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MIL OSI Translation. Region: Russian Federation –

Source: Central Bank of Russia – Central Bank of Russia (2) –

In accordance with paragraph 2 of the Procedure for drawing up reports in form 0420412, established in Appendix 1 to Directive No. 5709-U (hereinafter referred to as the Procedure in form 0420412), according to the indicators of section 1 “Information on requirements for debtors” (hereinafter referred to as section 1) of reporting on Form 0420412 indicates information about the reporting organization’s requirements for debtors. Information regarding claims on debtors is reflected for the following types of assets:

requirements for repo transactions; margin loans issued; accounts receivable.

According to paragraph 2 of the Procedure in form 0420412, for the indicators of section 1 of reporting in form 0420412, information is disclosed in relation to debtors, the total volume of claims of the reporting organization to which for the types of assets specified in paragraph 2 of the Procedure in form 0420412 exceeds one percent of all relevant assets of the reporting organization.

Thus, in section 1 of the reporting in form 0420412, as part of claims to debtors, information is disclosed in relation to each type of claim on the debtor by type of asset specified in paragraph 2 of the Procedure in form 0420412. At the same time, the total volume of claims of the reporting organization to the debtor by type of asset, specified in paragraph 2 of the Procedure in form 0420412, must exceed one percent of all assets of the reporting organization specified in paragraph 2 of the Procedure in form 0420412, that is, of the total volume of assets reflected in the following lines of the balance sheet of a non-credit financial organization (Appendix 1.1 of the Bank Regulations Russia dated 02/03/2016 No. 532-P “Industry Accounting Standard “Procedure for the preparation of accounting (financial) statements of professional participants in the securities market, joint-stock investment funds, trade organizers, central counterparties, clearing organizations, specialized depositories of an investment fund, mutual fund and non-state pension fund, investment fund management companies, mutual investment fund and non-state pension fund, credit history bureaus, credit rating agencies, insurance brokers” (hereinafter referred to as Regulation No. 532-P):

on line 3 “financial assets mandatory classified as measured at fair value through profit or loss” in terms of margin loans provided to individuals, margin loans provided to legal entities and individual entrepreneurs; on line 4 “financial assets classified as measured at fair value through profit or loss at the discretion of a non-credit financial institution” in terms of margin loans provided to individuals, margin loans provided to legal entities and individual entrepreneurs; on line 6 “debt instruments” in terms of margin loans provided to individuals, margin loans provided to legal entities and individual entrepreneurs; on line 9 “funds in credit institutions and non-resident banks” in terms of reverse repurchase transactions with credit institutions and non-resident banks; on line 10 “loans issued and other funds placed” in terms of reverse repurchase transactions with non-credit organizations, margin loans provided to individuals, valued at amortized cost, margin loans provided to legal entities and individual entrepreneurs, valued at amortized cost; on line 11 “accounts receivable” is taken into account in full.

We note that in Section 1 of the reporting in Form 0420412, information on the volume of claims to debtors for the types of claims specified in paragraph 1 of the Procedure in Form 0420412 is reflected in the context of the group of analytical characteristics “Book value” (full book value/book value).

Taking into account the above, we note that the calculation of the share of claims against the debtor from all relevant assets of the reporting organization is carried out based on the full book value (without deduction of the provision for impairment) of the assets specified in paragraph 2 of the Procedure in form 0420412.

In accordance with paragraph 3 of the Procedure in Form 0420412, for the indicators of Section 2 “Information on Obligations to Creditors” (hereinafter referred to as Section 2) of reporting in Form 0420412, information on the obligations of the reporting organization to creditors is indicated.

Information regarding obligations to creditors is reflected for the following types of obligations:

obligations under repo transactions; obligations to the reporting entity’s customers; accounts payable.

According to paragraph 3 of the Procedure in form 0420412, according to the indicators of section 2 of reporting in form 0420412, information is disclosed in relation to creditors, the total volume of obligations of the reporting organization to which exceeds one percent of all corresponding obligations of creditors. Information is disclosed about all obligations of the reporting entity to specified creditors.

Thus, in section 2 of the reporting in form 0420412, as part of the obligations to creditors, information should be indicated in relation to each type of obligation to creditors by type of obligation specified in paragraph 3 of the Procedure in form 0420412. At the same time, the total volume of obligations of the reporting organization to creditors by type of obligation specified in paragraph 3 of the Procedure in form 0420412, must exceed one percent of all obligations of creditors specified in paragraph 3 of the Procedure in form 0420412, that is, of the total volume of obligations reflected in the following lines of the balance sheet of a non-credit financial organization (Appendix 1.1 of Regulation No. 532-P):

on line 24 “financial liabilities mandatorily classified as measured at fair value through profit or loss” in terms of the obligation to re-deliver securities under a repurchase agreement; on line 27 “customer funds” are taken into account in full; on line 28 “Credits, borrowings and other borrowed funds” in terms of repo transactions and client funds used by the broker in its own interests for a fee; on line 30 “accounts payable” is taken into account in full.

Note; This information is raw content directly from the source of the information. This is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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