INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of November 7, 2016 No. 4180-U

About modification of the Provision of the Bank of Russia of October 1, 2015 No. 494-P "Industry standard of financial accounting of transactions with securities in not credit financial credit institutions"

1. According to the solution of the Board of directors of the Bank of Russia (the minutes of the Board of directors of the Bank of Russia of October 28, 2016 No. 30) to bring in the Provision of the Bank of Russia of October 1, 2015 No. 494-P "Industry standard of financial accounting of transactions with securities in not credit financial credit institutions", registered by the Ministry of Justice of the Russian Federation on October 29, 2015 No. 39528 ("the Bulletin of the Bank of Russia" of November 16, 2015 No. 103) (further - the Provision of the Bank of Russia No. 494-P), the following changes.

1.1. To add preamble after the words "Art. 4357" with words "; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3891; No. 27, Art. 4225, Art. 4273, Art. 4295".

1.2. In Item 1.1 of the word "No. 27, Art. 3880;" to exclude, after the words "Art. 4357" to add with words "; 2016, No. 1, Art. 50, Art. 81; No. 27, Art. 4225".

1.3. In Item 1.4:

to state the paragraph of the seventh in the following edition:

"When calculating depreciated cost with use of the ESP method interest incomes are charged on ESP (discount rate). ESP for calculation of depreciated cost is determined according to the International accounting standard (IAS) 39 "Financial instruments: recognition and assessment", the order of the Ministry of Finance of the Russian Federation enacted in the territory of the Russian Federation of December 28, 2015 No. 217n "About introduction of International accounting standards and Explanations of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders (separate provisions of orders) of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on February 2, 2016 No. 40940 ("The official Internet portal of legal information" (www.pravo.gov.ru), on February 8, 2016), with amendments, enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of June 27, 2016 No. 98n "About introduction of documents of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on July 15, 2016 No. 42869 ("The official Internet portal of legal information" (www.pravo.gov.ru), on July 18, 2016 (further - IFRS (IAS) 39).";

to add the paragraph of the eighth with words "(further - reporting date) which is understood as the first quarter, half-year, nine months and year";

the eleventh to state the paragraph in the following edition:

"The adjustments reducing and increasing the cost of debt securities are considered on the corresponding accounts of the second procedure opened on balance sheet accounts of the first procedure No. 501 "The debt securities estimated at fair value through profit or loss", No. 502 "Debt securities, available for sale or the debt securities estimated at fair value through other comprehensive income", No. 503 "Debt securities, withheld before repayment" No. 504 "The debt securities (except bills of exchange) considered on depreciated cost except estimated at fair value through profit or loss, available for sale, estimated at fair value through other comprehensive income and withheld before repayment", No. 512 "The bills of exchange estimated at fair value through profit or loss", No. 513 "Bills of exchange available for sale, or the bills of exchange estimated at fair value through other comprehensive income", No. 514 "Bills of exchange, withheld before repayment" No. 515 "The bills of exchange considered on depreciated cost except estimated at fair value through profit or loss, available for sale, estimated at fair value through other comprehensive income and withheld before repayment" (further - accounts on accounting of the adjustments reducing the cost of debt securities or the account on accounting of the adjustments increasing the cost of debt securities) the Chart of accounts of the financial accounting in not credit financial credit institutions established by the Provision of the Bank of Russia of September 2, 2015 No. 486-P "About the Chart of accounts of financial accounting in not credit financial credit institutions and procedure for its application" No. registered by the Ministry of Justice of the Russian Federation on October 7, 2015 39197, __ ________ 2016 No. ___ ("the Bulletin of the Bank of Russia" of October 29, 2015 No. 94 - 95, from __________ 2016 No. ___) (further - the Chart of accounts of financial accounting in not credit financial credit institutions).";

1 to exclude footnote.

1.4. To declare the paragraph of the seventh of Item 1.4 invalid.

1.5. Add with Item 1.4.1 of the following content:

"1.4.1. When calculating depreciated cost with use of the ESP method interest incomes are charged on ESP (discount rate). ESP for calculation of depreciated cost is determined according to the International accounting standard (IFRS) 9 "Financial instruments", in edition of 2014, the order of the Ministry of Finance of the Russian Federation enacted in the territory of the Russian Federation of June 27, 2016 No. 98n "About introduction of documents of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on July 15, 2016 No. 42869 ("The official Internet portal of legal information" (www.pravo.gov.ru), on July 18, 2016) (further - the order of the Ministry of Finance of the Russian Federation No. 98n) (further - IFRS (IFRS) 9).

Not credit financial credit institution has the right to make the decision on early application of IFRS (IFRS) 9 since January 1, 2017 and to reflect this decision in accounting policy.

Provisions of the paragraph of the seventh Item 1.4 of this provision are not applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Provisions of this Item are applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.".

1.6. In Item 1.5:

the second offer of paragraph one to state in the following edition: "Assessment of fair value is performed according to the procedure, the determined International accounting standard (IFRS) 13 "Assessment of fair value" enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation of December 28, 2015 No. 217n "About introduction of International accounting standards and Explanations of International accounting standards in action in the territory of the Russian Federation and about recognition voided some orders (separate provisions of orders) of the Ministry of Finance of the Russian Federation", the registered Ministry of Justice of the Russian Federation on February 2, 2016 No. 40940 ("The official Internet portal of legal information" (www.pravo.gov.ru), on February 8, 2016) (further - the order of the Ministry of Finance of the Russian Federation No. 217n), with the amendments enacted in the territory of the Russian Federation by the order of the Ministry of Finance of the Russian Federation No. 98n.".

in the paragraph the second words "in the International accounting standard (IAS) 39 "Financial instruments: recognition and assessment" shall be replaced with words "IFRS (IAS) 39".

1.7. To declare paragraph two of Item 1.5 invalid.

1.8. Add with Item 1.5.1 of the following content:

"1.5.1. Provisions of paragraph two of Item 1.5 of this provision are not applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Provisions of this Item are applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Assessment of fair value of securities can be acknowledged reliable if the range in which there are fair value estimations (made on the basis of such evaluation methods as, for example, market or profitable approaches) is not essential, and also in other cases provided by IFRS (IFRS) 9. Recognition criteria of assessment of fair value of securities of reliable affirm as accounting policy of not credit financial credit institution.".

1.9. In paragraph one of Item 1.7 of the word "the financial instruments provided by the International accounting standard (IAS) 39 are carried out ": recognition and assessment" "shall be replaced with words" criteria the requirements provided by IFRS (IAS) 39 are observed".

1.10. The paragraph one of Item 1.7 to declare invalid.

1.11. Add with Item 1.7.1 of the following content:

"1.7.1. Provisions of paragraph one of Item 1.7 of this provision are not applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Provisions of this Item are applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

For the purpose of this provision the derecognition of security is understood as write-off of security from accounting on balance sheet accounts as a result of disposal (realization) in connection with assignment of rights of property on security, repayment of security or impossibility of realization of the rights affirmed by security and also in other cases when the requirements provided by IFRS (IFRS) 9 for derecognition of securities are observed.".

1.12. In the paragraph the second Item 1.8 of the word "International accounting standard (IAS) 39 "Financial instruments: recognition and assessment" shall be replaced with words "IFRS (IAS) 39".

1.13. To declare paragraph two of Item 1.8 invalid.

1.14. Add with Item 1.8.1 of the following content:

"1.8.1. Provisions of paragraph two of Item 1.8 of this provision are not applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Provisions of this Item are applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Determination of criteria of transition of all risks and benefits (or practically all risks and benefits) is performed according to IFRS (IFRS) 9.".

1.15. In Item 1.12:

the paragraph one after the word "compliance" to add with the word "with";

in the paragraph the second shall be replaced with words the words "or available for sale" ", available for sale or estimated at fair value through other comprehensive income".

1.16. In Item 2.1:

in paragraph one shall be replaced with words the word "as" "in one of the following categories";

word in paragraph five "International accounting standard (IAS) 39 "Financial instruments: recognition and assessment" shall be replaced with words "IFRS (IAS) 39".

1.17. Declare Item 2.1 invalid.

1.18. Add with Item 2.1.1 of the following content:

"2.1.1. Provisions of Item 2.1 of this provision are not applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Provisions of this Item are applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Securities in case of initial recognition are classified by not credit financial credit institutions depending on the business model used for management of securities, and nature of the cash flows provided by terms of the contract in one of the following categories:

the securities estimated on depreciated cost;

the securities estimated at fair value through other comprehensive income;

the securities estimated at fair value through profit or loss.

In case of classification of securities not credit financial credit institution shall use the criteria of classification established by IFRS (IFRS) 9.

Not credit financial credit institution carries securities in category of the securities estimated on depreciated cost if both following conditions are satisfied:

securities are acquired within business model which purpose is deduction of securities for receipt of the cash flows provided by conditions of release;

conditions of issue of securities cause obtaining in certain dates of the cash flows which are only payments on account of the main amount of debt and percent on outstanding part of the main amount of debt.

Not credit financial credit institution estimates securities at fair value through other comprehensive income if both following conditions are satisfied:

securities are acquired within business model which goal is achieved as by receipt of the cash flows provided by conditions of release, and by security sale;

conditions of issue of securities cause obtaining in certain dates of the cash flows which are only payments on account of the main amount of debt and percent on outstanding part of the main amount of debt.

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