INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of November 7, 2016 No. 4179-U

About modification of the Provision of the Bank of Russia of October 1, 2015 No. 493-P "Industry standard of financial accounting by not credit financial credit institutions of transactions on issue (placement) of money according to loan agreements and bank deposit agreements"

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 18, 2016 No. 29) to bring in the Provision of the Bank of Russia of October 1, 2015 No. 493-P "Industry standard of financial accounting by not credit financial credit institutions of transactions on issue (placement) of money according to loan agreements and bank deposit agreements", registered by the Ministry of Justice of the Russian Federation on October 15, 2015 No. 39330 ("the Bulletin of the Bank of Russia" of November 9, 2015 No. 99 - 100) (further - the Provision of the Bank of Russia No. 493-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. Add Item 1.3 with the paragraph of the following content:

"Date of reflection in financial accounting of concession of the agreement requirement of loan or on bank deposit agreement is date of transfer of the requirement to the cessionary when transfer corresponds to criteria for derecognition 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 the amendments enacted in the territory of the Russian Federation

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).".

1.3. Add with Item 1.3.1 of the following content:

"1.3.1. Date of reflection in financial accounting of concession of the agreement requirement of loan or on bank deposit agreement is date of transfer of the requirement to the cessionary when transfer corresponds to criteria for derecognition according to the International accounting standard (IFRS) 9 "Financial instruments" in edition of 2014 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 (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 fifth Item 1.3 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.".

1.4. Add Item 1.5 with the paragraph of the following content:

"The concession of the agreement requirement of loan or on bank deposit agreement is reflected in financial accounting based on source accounting documents confirming transfer of the requirement to the cessionary.".

1.5. State Item 1.6 in the following edition:

"1.6. The money issued (placed) according to the loan agreement or on bank deposit agreement is considered after initial recognition on depreciated cost according to IFRS (IAS) 39.

Not credit financial credit institution, being guided by IFRS (IAS) 39, can on date of issue (placements) of money according to the loan agreement or at own discretion to classify them by bank deposit agreement as estimated at fair value through profit or loss or as available for sale.".

1.6. 1 to Item 1.6 to exclude footnote.

1.7. Declare Item 1.6 invalid.

1.8. Add with Item 1.6.1 of the following content:

"1.6.1. Provisions of Item 1.6 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.

Not credit financial credit institutions classify the money issued (placed) according to the loan agreement or on bank deposit agreement as the dates of issue (placement) estimated later on depreciated cost, at fair value through other comprehensive income or at fair value through profit or loss, proceeding from:

the business model used by not credit financial credit institution for financial asset management and

characteristics of the issued (placed) loan or the bank deposit connected with the cash flows provided by the agreement.

In case of classification and assessment of the money issued (placed) according to the loan agreement or on bank deposit agreement, not credit financial credit institutions are guided also by IFRS (IFRS) 9.

Not credit financial credit institution determines fair value of the money issued (placed) according to the loan agreement or on bank deposit agreement, based on IFRS (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).

Not credit financial credit institution estimates the money issued (placed) according to the loan agreement or on bank deposit agreement, on depreciated cost if both following conditions are satisfied:

the specified means are issued placed) within business model which purpose is receipt of the cash flows provided by the agreement, and

terms of the contract cause obtaining in the specified 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 the money issued (placed) according to the loan agreement or on bank deposit agreement, at fair value through other comprehensive income if both following conditions are satisfied:

the specified means are issued placed) within business model which goal is achieved as by receipt of the cash flows provided by the agreement, and by concession of the agreement requirement of loan or on bank deposit agreement;

terms of the contract cause obtaining in the specified 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 the money issued according to the loan agreement, at fair value through profit or loss, except as specified, when they are estimated on depreciated cost or at fair value through other comprehensive income.

Not credit financial credit institution can on date of issue of money at own discretion classify them under the loan agreement (without the right of the subsequent reclassification) as estimated at fair value through profit or loss if it allows to eliminate or to considerably reduce inconsistency of approaches to assessment or recognition (accounting discrepancy) which differently would arise owing to use of different measurement bases of assets or liabilities or recognition of the related income and expenses.

In case of change of the business model used by not credit financial credit institution for management of the issued (placed) loans or deposits, not credit financial credit institution shall change classification of the corresponding issued (placed) loans or deposits. In case of decision making about reclassification not credit financial credit institution is guided by IFRS (IFRS) 9.".

1.9. To add Item 1.7 after the words "with use of effective interest rate method (further-ESP) depreciation of difference between original cost and repayment sum" with the words "in case of approach of repayment period".

1.10. State Item 1.13 in the following edition:

"1.13. Not credit financial credit institutions create reserves under impairment according to Items 2.25 - 2.53 this provision.".

1.11. State Item 1.13 in the following edition:

"1.13. Not credit financial credit institutions create reserves under impairment according to Items 2.29 - 2.53 this provision.".

1.12. Add Item 1.14 with paragraphs of the following content:

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

In case of determination of procedure for analytics not credit financial credit institution provides separate receipt of information on the money issued (placed) according to the loan agreement or on bank deposit agreement, estimated on depreciated cost, estimated at fair value through profit or loss and estimated at fair value through other comprehensive income.".

1.13. In Item 1.15:

after the words "at least once a quarter" to add with the words "the last day of the accounting period, and also for date of complete or partial disposal (realization, repayment) or write-offs of loan or bank deposit";

add with paragraphs of the following content:

"Also provisions of paragraphs of third and fourth this Item are applied to not credit financial credit institution which made the decision on application of IFRS (IFRS) 9 since January 1, 2017.

Not credit financial credit institution performs revaluation of the money issued (placed) according to the loan agreement or on bank deposit agreement, estimated at fair value through profit or loss or at fair value through other comprehensive income, at least once a quarter on reporting date and also for date of complete or partial disposal (realization, repayment) or write-offs of loan or bank deposit.

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