INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of August 30, 2016 No. 4113-U

About modification of the Provision of the Bank of Russia of September 2, 2015 No. 488-P "Industry standard of financial accounting of derivative financial instruments by 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 August 23, 2016 No. 24) to bring in the Provision of the Bank of Russia of September 2, 2015 No. 488-P "Industry standard of financial accounting of derivative financial instruments by not credit financial credit institutions" registered by the Ministry of Justice of the Russian Federation on October 15, 2015 No. 39326 ("the Bulletin of the Bank of Russia" of November 6, 2015 No. 97 - 98) (further - the Provision of the Bank of Russia No. 488-P), the following changes.

1.1. State preamble in the following edition:

"According to the Federal Law of July 10, 2002 No. 86-FZ "About the Central bank the Russian Federation (Bank of Russia)" (The Russian Federation Code, 2002, No. 28, Art. 2790; 2003, No. 2, Art. 157; No. 52, Art. 5032; 2004, No. 27, Art. 2711; No. 31, Art. 3233; 2005, No. 25, Art. 2426; No. 30, Art. 3101; 2006, No. 19, Art. 2061; No. 25, Art. 2648; 2007, No. 1, Art. 9, Art. 10; No. 10, Art. 1151; No. 18, Art. 2117; 2008, No. 42, Art. 4696, Art. 4699; No. 44, Art. 4982; No. 52, Art. 6229, Art. 6231; 2009, No. 1, Art. 25; No. 29, Art. 3629; No. 48, Art. 5731; 2010, No. 45, Art. 5756; 2011, No. 7, Art. 907; No. 27, Art. 3873; No. 43, Art. 5973; No. 48, Art. 6728; 2012, No. 50, Art. 6954; No. 53, Art. 7591, Art. 7607; 2013, No. 11, Art. 1076; No. 14, Art. 1649; No. 19, Art. 2329; No. 27, Art. 3438, Art. 3476, Art. 3477; No. 30, Art. 4084; No. 49, Art. 6336; No. 51, Art. 6695, Art. 6699; No. 52, Art. 6975; 2014, No. 19, Art. 2311, Art. 2317; No. 27, Art. 3634; No. 30, Art. 4219; No. 40, Art. 5318; No. 45, Art. 6154; No. 52, Art. 7543; 2015, No. 1, Art. 4, Art. 37; No. 27, Art. 3958, Art. 4001; No. 29, Art. 4348, Art. 4357; No. 41, Art. 5639; No. 48, Art. 6699; 2016, No. 1, Art. 23, Art. 46, Art. 50; No. 26, Art. 3891; No. 27, the Art. 4225, the Art. 4273, the Art. 4295) and the solution of the Board of directors of the Bank of Russia (No. 18) the Bank of Russia establishes the minutes of the Board of directors of the Bank of Russia of June 15, 2015 for not credit financial credit institutions located in the territory of the Russian Federation (further - not credit financial credit institutions), procedure for financial accounting of the derivative financial instruments determined according to the Federal Law of April 22, 1996 No. 39-FZ "About the security market" (The Russian Federation Code, 1996, No. 17, Art. 1918; 2001, No. 33, Art. 3424; 2002, No. 52, Art. 5141; 2004, No. 27, Art. 2711; No. 31, Art. 3225; 2005, No. 11, Art. 900; No. 25, Art. 2426; 2006, No. 1, Art. 5; No. 2, Art. 172; No. 17, Art. 1780; No. 31, Art. 3437; No. 43, Art. 4412; 2007, No. 1, Art. 45; No. 18, Art. 2117; No. 22, Art. 2563; No. 41, Art. 4845; No. 50, Art. 6247; 2008, No. 52, Art. 6221; 2009, No. 1, Art. 28; No. 18, Art. 2154; No. 23, Art. 2770; No. 29, Art. 3642; No. 48, Art. 5731; No. 52, Art. 6428; 2010, No. 17, Art. 1988; No. 31, Art. 4193; No. 41, Art. 5193; 2011, No. 7, Art. 905; No. 23, Art. 3262; No. 29, Art. 4291; No. 48, Art. 6728; No. 49, Art. 7040; No. 50, Art. 7357; 2012, No. 25, Art. 3269; No. 31, Art. 4334; No. 53, Art. 7607; 2013, No. 26, Art. 3207; No. 30, Art. 4043, Art. 4082, Art. 4084; No. 51, Art. 6699; No. 52, Art. 6985; 2014, No. 30, Art. 4219; 2015, No. 1, Art. 13; No. 14, Art. 2022; No. 27, Art. 4001; \Art. U-2116\29, 4348, Art. 4357; 2016, No. 1, Art. 50, Art. 81; No. 27, Art. 4225).".

1.2. State Item 1.4 in the following edition:

"1.4. Not credit financial credit institution derecognizes the derivative financial instrument representing asset in case of the termination according to the agreement of requirements and obligations on the derivative financial instrument, including in case of agreement performance, agreement cancelation by agreement of the parties or if it transfers the derivative financial instrument representing asset, to other person, and at the same time transfer meets requirements of 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 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), including in case of concession of all requirements and agreement obligations.

The derivative financial instrument is also derecognized in case of the obligation fulfillment expiration under the agreement.

Not credit financial credit institution transfers the derivative financial instrument representing asset if it transfers the rights under the contract for receipt of money on the derivative financial instrument or if it keeps the rights under the contract for receipt of money on the derivative financial instrument, but assumes contractual commitment to pay this money to one or more receivers under the agreement which meets conditions, the established IFRS (IAS) 39.

Not credit financial credit institution derecognizes the derivative financial instrument representing the obligation, or its parts when the obligation specified in the agreement is fulfilled, the agreement is terminated or the term of its action expired, and also in case of concession of all requirements and agreement obligations.

Considerable change of conditions of the existing derivative financial instrument representing the obligation, or its parts (irrespective of whether this change is connected with financial difficulties of other agreement party) should be considered as derecognition of the initial derivative financial instrument representing the obligation, and recognition of the new obligation.

Concerning the conditions connected with derecognition of the derivative financial instruments which are not settled within this provision, not credit financial credit institution is guided by provisions IFRS (IAS) 39.".

1.3. 1 to Item 1.4 to exclude footnote.

1.4. Add with Item 1.4.1 of the following content:

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

Provisions of Item 1.4 of this provision are not applied to not credit financial credit institution which made the decision on application of the International accounting standard (IFRS) 9 "Financial instruments" in edition of 2014 since January 1, 2017.

Provisions of this Item are applied to not credit financial credit institution which made the decision on application of the International accounting standard (IFRS) 9 "Financial instruments" in edition of 2014 since January 1, 2017.

Not credit financial credit institution derecognizes the derivative financial instrument representing asset in case of the termination according to the agreement of requirements and obligations on the derivative financial instrument, including in case of agreement performance, agreement cancelation by agreement of the parties or if it transfers the derivative financial instrument representing asset, to other person, and at the same time transfer meets requirements of 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), including in case of concession of all requirements and agreement obligations.

The derivative financial instrument is also derecognized in case of the obligation fulfillment expiration under the agreement.

Not credit financial credit institution transfers the derivative financial instrument representing asset if it transfers the rights under the contract for receipt of money on the derivative financial instrument or if it keeps the rights under the contract for receipt of money on the derivative financial instrument, but assumes contractual commitment to pay this money to one or more receivers under the agreement which meets conditions, the established IFRS (IFRS) 9.

Not credit financial credit institution derecognizes the derivative financial instrument representing the obligation, or its parts when the obligation specified in the agreement is fulfilled, the agreement is terminated or the term of its action expired, and also in case of concession of all requirements and agreement obligations.

Considerable change of conditions of the existing derivative financial instrument representing the obligation, or its parts (irrespective of whether this change is connected with financial difficulties of other agreement party) should be considered as derecognition of the initial derivative financial instrument representing the obligation, and recognition of the new obligation.

Concerning the conditions connected with derecognition of the derivative financial instruments which are not settled within this provision, not credit financial credit institution is guided by provisions IFRS (IFRS) 9.".

1.5. State Item 2.1 in the following edition:

"2.1. Not credit financial credit institution determines fair value of the derivative financial instrument 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).".

1.6. 1 to Item 2.1 to exclude footnote.

1.7. To state paragraph two of Item 8.2 in the following edition:

"This Provision professional participants of the security market, managing companies of investment fund, mutual investment fund and non-state pension fund (except for transactions with property according to the trust management agreement of means of non-state pension funds and insurance companies to which this Provision is applied since January 1, 2017), specialized depositaries of investment fund, mutual investment fund and non-state pension fund (except for transactions with property in which means of non-state pension funds, and with property of insurance companies to which this Provision is applied since January 1, 2017 are placed), the clearing organizations, the central partners, organizers of trade, the microfinancial organizations, credit consumer cooperatives, housing accumulative cooperatives, the bureau of credit histories is applied since January 1, 2018, agricultural credit consumer cooperatives, is applied by pawnshops since January 1, 2019.".

2. This Instruction is subject to official publication and becomes effective since January 1, 2017.

3. Item 1.4 and paragraphs the first - third Item 1.4.1 of the Provision of the Bank of Russia No. 488-P are effective till January 1, 2023.

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