Supervision Of Credit Institutions, Investment Firms And Investment Management Company Of The Annual Accounts And The Consolidated Annual Report Of The Legislative Provisions

Original Language Title: Kredītiestāžu, ieguldījumu brokeru sabiedrību un ieguldījumu pārvaldes sabiedrību gada pārskata un konsolidētā gada pārskata sagatavošanas normatīvie noteikumi

Read the untranslated law here: https://www.vestnesis.lv/ta/id/129249

Financial and capital market Commission Regulation No 46 (financial and capital market Commission in Riga on 24 February 2006 Council meeting at no 10, p. 2)
Banks, investment companies and investment management company of the annual accounts and the consolidated annual report Regulations Issued pursuant to the financial and capital market Commission of the law article 7 paragraph 1, first subparagraph, and article 17, paragraph 2 of the law of credit institutions 76.79.89., and article, financial instruments market law 114. and article 115, the investment management company law article 75.1 of the first, third and fourth parts of the European Parliament and of the Council of 19 July 2002, Regulation (EC) No 1606/2002 "On the international accounting standards the application of point 5 of "i. General questions 1." banks, investment companies and investment management company of the annual accounts and the consolidated annual report for the preparation of the rules "(hereinafter-the rules) are binding on the banks that operate in accordance with the law of credit institutions, investment firms, which operate in accordance with the financial instruments market law and investment management companies, operating in accordance with the laws of the investment management company (hereinafter – the bank) When preparing the annual accounts, consolidated accounts and the accounts of the sort.
2. the Bank for each transaction in the year the accounts or consolidated annual accounts. Annual report (consolidated financial statements) as a single package consisting of: 2.1. financial statements (consolidated financial statements);
2.2. Management (Council and Board) report (the parent company of the group management report);
2.3. the statement of management responsibility.
3. Financial statements (consolidated financial statements) should provide a true and fair view of the financial position of the bank, its operating results and cash flow. Financial report (consolidated financial statements) the preparation is carried out on the basis of the international accounting standards Board issued international accounting standards, financial reporting standards and international financial reporting interpretations Committee's interpretations of the standards approved by the European Commission and which has been published in the official journal of the European Union (hereafter referred to as international financial reporting standards). Information about the European Commission approved international financial reporting standards available from the internet website: www.europa.eu.int/comm/internal_market/accounting/ias_en.htm as well as the Ministry of Finance of the Republic of Latvia's website: www.fm.gov.lv. The preparation of financial statements (consolidated financial statements), you can also use the international financial reporting standards published in the official journal of the European Union after the balance sheet date but before the approval of the annual report. Information about international financial reporting standards in the course of approval of the European Commission, and the expected publication of the official journal of the European Union is available on the website www.efrag.org.
4. financial statements (consolidated financial statements) include: 4.1. balance sheet (consolidated balance sheet);
4.2. income statement (consolidated profit and loss statement);
4.3. cash-flow statements (the consolidated cash flow statement);
4.4. changes to the capital and reserves accounts (consolidated capital and reserves changes);
4.5. the annex.
5. The sample balance sheet, off-balance sheet and income statement items are specified in the rules for layout 15 and 21, but the cash flow statement and changes in capital and reserves report sample-in annex 2 and 3. The Bank may hide some of the items of the financial statements, if they are not essential or not reporting it makes financial reporting more transparent, and create that report items on a different layout or include additional items, but in any case the roles information recording must comply with international financial reporting standards.
6. the annex shall include descriptive information on the balance sheet, off-balance sheet, income statement, cash flow statement, changes in capital and reserves report (consolidated balance sheets, consolidated income statement, the consolidated cash flow statement the consolidated capital and reserves changes) items of content, comment on the risk control and management, related to the operations of the bank, as well as reveal other information that could have a significant influence on, or may have a significant effect on the financial position of the bank , the operating result and cash flow evaluation.
7. Annual report (consolidated annual accounts), the currency is the monetary unit of the Republic of Latvia. Annual report (consolidated annual accounts), the financial statements show the degree of accuracy of the figures.
8. explanation of terms used in the regulations is given in annex 1.
II. submission of the annual report and the publication of an annual report 9 (consolidated annual accounts), the minutes of the general meeting statement on the annual report (consolidated annual accounts), the full approval of the auditor's report and the jury management addressed in the auditor's report shall be submitted to a sworn financial and capital market Commission (hereinafter "Commission") by the law of credit institutions, the law on the financial instruments market or investment management company in accordance with the procedure prescribed by law.
10. Annual report (consolidated financial statements) and the auditor's opinion shall be published in the law of credit institutions, the law on the financial instruments market or investment management company in accordance with the procedure prescribed by law.
III. Reports 11. investment banking and public management (the management of the parent company of the Group) report on the annual report (consolidated annual accounts) be prepared in accordance with the relevant law of credit institutions or financial instruments market law. The parent company of the group management report for the consolidated annual accounts include the financial position of the Group and economic activity to the characteristics of the sa, as well as the prospects of the group.
12. Investment management company management (the management of the parent company of the Group) the report indicates: 12.1. investment management company name, registered office and registration number, license investment management company for the transaction number and date of issue;
12.2. managing existing investment funds and fund types, as well as information on private pension funds, the State funded pension scheme and individual client portfolios of financial instruments and levels, as well as the provision of advice;
12.3. the President of the Council and of the Board and the Management Board and the members of the Council name, position. This information is also provided for those individuals who in the year left the positions.
12.4. the investment management company's investment policy and its description of the changes in the reporting year, noting all significant risks, t.sk. with the use of financial instruments, strategies, risks, and policy;
12.5. details of any important events from the end of the year to approve the annual report of the day that are significant in the investment management company's financial condition and its understanding of performance;
12.6. the further development forecast, explaining any relevant circumstance and risk.
13. The notice of management (management of the parent company of the Group) responsibility: 13.1. Management (the management of the parent company of the Group) are obliged in accordance with the Republic of Latvia the applicable legislative requirements to prepare financial statements (consolidated financial statements), which clearly and truly reflect of the bank (Group's) financial position at the end of the year, as well as its annual activity report of the results and cash flow;
13.2. the management (of the parent company of the Group) is responsible for proper accounting, banking sort (Group), as well as fraud and other fraudulent activities;
13.3. do financial statements (consolidated financial statements) prepared in accordance with the consistent use of international financial reporting standards;
13.4. or management (the management of the parent company of the Group) the decisions and assumptions about financial statements (consolidated financial statements) has been preparing carefully and wisely.
14. If any member of the Council or the Executive Board considers that the annual report (consolidated financial statements) is not confirmed, or raise objections, which he will announce the meeting, this particular statement of management responsibility.
IV. Balance sheet and off-balance sheet items 15. balance sheet and off-balance-sheet items layout sample 15.1 assets cash and 15.1.1. to demand from central banks on request. 15.1.2 to credit institutions 15.1.3. Held for trading financial assets 15.1.3.1. Debt securities and other fixed income securities 15.1.3.2. Shares and other securities with fixed income 15.1.3.3. Derivative financial instruments are classified as 15.1.4. fair value of financial assets with an estimated coverage of a profit and loss statement 15.1.4.1. Debt securities and other fixed income securities 15.1.4.2. Equities and other non fixed income 15.1.5. Available-for-sale financial assets 15.1.5.1. Debt securities and other fixed income securities

15.1.5.2. Shares and other securities with fixed income 15.1.6. Loans and receivables 15.1.7. Held-to-maturity investments Against the risk of interest 15.1.8. the limited part of the fair value of the portfolio changes 15.1.9. Accrued income and prepaid expenses 15.1.10. assets 15.1.11. Investment property 15.1.12. Intangible assets investments in affiliated and 15.1.13. associated companies share capital 15.1.14. tax assets 15.1.15. Other assets total assets 15.1.16.15.2 15.2.1. commitments commitments against the central banks on demand. 15.2.2 to credit institutions 15.2.3. Held for trading financial liabilities 15.2.3.1. 15.2.3.2. Equity instruments debt instruments 15.2.3.3. Derivative financial instruments classified as 15.2.4. fair value of financial liabilities to evaluated evidence of profit or loss statement 15.2.5. Amortized acquisition value rated financial obligations. Deposits 15.2.5.1 15.2.5.2. Subordinated liabilities 15.2.6. Financial assets resulting from the transfer of financial liabilities against interest risks 15.2.7. the limited part of the fair value of the portfolio changes 15.2.8. Accrued expenses and deferred income 15.2.9. Accruals Accruals for pensions 15.2.9.1. and similar obligations 15.2.9.2. other accruals 15.2.10. Tax 15.2.11 15.2.12. other liabilities total liabilities
15.3. Capital and reserves share capital 15.3.1 15.3.2. Share premium own shares 15.3.4 15.3.3. reserves capital and other reserves revaluation reserve 15.3.6 15.3.5. Previous years retained earnings/loss 15.3.7. Profit/loss 15.3.8. Total equity and reserves 15.3.9. Total liabilities and capital and reserves 15.4. Off-balance sheet items contingent liabilities 15.4.1.15.4.1.1. Guarantees (warranties) 15.4.1.2. other contingent liabilities off-balance-sheet commitments against 15.4.2. customers obligations of active 15.4.2.1. sales with repurchase option 15.4.2.2. the other off-balance-sheet commitments v. explanation of balance sheet and off-balance-sheet items assets 16 16.1. Cash and claims on central banks against cash on hand includes a legal means of payment, t.sk. The monetary unit of the Republic of Latvia, as well as the other Member States and foreign exchange (hereinafter: foreign currency) banknotes as well as coins.
This item shall also features current accounts at the Bank of Latvia and other claims against the Bank on request. Other claims against Bank of Latvia presented a balance sheet asset 15.1.3.,.,., 15.1.6 15.1.4 15.1.5. or. 15.1.7.
This item shall also claim to request Member States and against their foreign central banks, with the bank's branches, as well as against the European Central bank.
16.2. requirements on demand to credit institutions this item displays all claims arising from transactions with foreign credit institutions in the Member States and that can be satisfied without prior demand or request deadline is 24 hours or one business day. A credit institution within the meaning of this provision corresponds to article 1 of the law of credit institutions 1, point a (a)).
16.3. Held for trading financial assets this item reflects the portion of the fair value of financial assets with an estimated coverage of profit or loss, which under international accounting standard 39., the bank may be classified as held for trading financial assets such as debt instruments, equity instruments and derivative financial instruments.
16.4. Classified as fair value financial assets evaluated the presentation of profit and loss statement under this item reflects the portion of the fair value of financial assets with an estimated coverage of profit or loss, which under international accounting standard 39., the bank may be classified as classified as fair value financial assets estimated by the presentation of the income statement, such as debt and equity instruments.
16.5. Loans and receivables show This item claims arising from transactions with customers, t.sk. loans, financial leasing and other financial assets with a fixed term, which shall be classified as loans and receivables.
16.6. Held-to-maturity investments this item displays the debt traded on a regulated market of securities and other financial investments with a fixed maturity that are classified as held-to-maturity investments, as well as other claims against credit institutions and central banks if they should not be presented in other assets of the balance sheet items.
16.7. To interest risk the limited part of the portfolio change in fair value of this item is presented against the interest risk in portfolios of financial instruments reduced part of the fair value of financial assets or financial liabilities the increase in the share of the reduction in accordance with the international accounting standard 39..
16.8. Accrued income and prepaid expenses this item displays the income relating to the financial year and for earlier years, but the period for receipt of the balance sheet date are not yet timed, for example, not yet received, but the calculated commissions, rents, interest income, except where, in accordance with international financial reporting standards include the specified financial assets at fair value or amortized acquisition costs.
This item shall also show the expenses incurred up to the end of the financial year but relating to future periods.
16.9. Fixed assets this item shows the bank owned (t.sk. no purchase leased and financial leasing transactions resulting) fixed assets, i.e., tangible assets that the bank uses to provide services, or for administrative purposes and provides for rent in use for more than one year, such as land, buildings, vehicles, equipment, URu.tml. assets.
Here also display software, which is the electronic equipment or devices are an integral part of the bank-owned and non-purchase of leased asset reconstruction, improvement or restoration costs, which improved the economic performance of the asset if the asset lease agreement does not provide for the reimbursement of costs and expenses.
This item displays the unfinished construction costs and advance payments for fixed assets referred to in this paragraph.
16.10. Intangible assets this item shows the intangible assets, i.e. assets that do not have material forms, which are kept in the provision of services or for other purposes, if it is expected that the bank will receive in the future economic benefits that are attributable to those assets, such as the payment of acquired rights, t.sk. concessions, patents, licenses, rights to use the trade mark, the right of rental URu.tml. right, software that is not electronic equipment or devices are an integral part of and other similar in substance to the compensation for assets. Here shall also advance payments for intangible assets.
16.11 tax assets this item shows the deferred tax assets as well as current corporate income tax assets in accordance with international accounting standard 12.
16.12. Other assets this item shows the assets of which does not comply with the other assets of the balance sheet items (t.sk. precious metals, precious stones, movable and immovable property is carried as outstanding credit and other collateral claims if the bank intends to sell, as well as other tangible assets that the bank does not use and plan to dispose).
Here also the display without the purchase of the leased asset reconstruction, improvement or restoration costs, if the asset lease agreement provides for the reimbursement of costs and expenses.
17. Liability 17.1. Liabilities to central banks, this item displays all obligations arising from transactions with the Bank of Latvia, national and foreign central banks, excluding the results of the issuance of debt built up in the commitments, which show a balance sheet liability 15.2.3-15.2.5. item.
17.2. the commitment to request to credit institutions this item displays all liabilities incurred in dealings with national and foreign credit institutions which are repayable, without prior request, or whose request deadline is 24 hours or one business day.
17.3. Held for trading financial liabilities this item displays the financial liabilities to credit institutions and other clients of the held for trading financial derivatives, short positions in other company equity instruments and debt instruments and other liabilities of the bank which are classified as held for trading financial liabilities.
17.4. Classified as fair value assessed financial obligations with the presentation of profit and loss statement

This item displays the financial commitment for the upstream and the other liabilities liabilities which the bank classifies as fair value estimated financial commitments with the presentation of the income statement, except for the obligations to the central banks and credit institutions, which are presented in the balance sheet liability 15.2.1 and 15.2.2. item. This item shall also show the financial commitments for the bank itself issued financial instruments classified as at fair value estimated financial commitments with the presentation of the income statement.
17.5. Amortized acquisition value rated financial commitments this item displays the financial liabilities to credit institutions and other customers on current accounts and deposits, and other liabilities in the context of the commitments which the bank classifies as amortized acquisition value rated financial obligations, excluding liabilities to central banks and credit institutions, which are presented in the balance sheet liability 15.2.1 and 15.2.2. item.
10.9. the transfer of financial assets the resulting financial obligations this item shows the amount of the consideration received for financial assets that are transferred to another party, but the bank retains a significant portion of the risks and benefits resulting from the transferred financial assets in accordance with international accounting standard 39. in paragraph 29, as well as the bank's liabilities on stored transferred financial assets in accordance with international accounting standard 39-31. The annex provides information on the types of financial assets and their corresponding financial liabilities.
17.7. Against interest risks in the portfolio, part of the limited change in the fair value of this item is presented against the interest risk in portfolios of financial instruments reduced part of the fair value of financial assets or financial liabilities decrease in the increase of 39. parts in accordance with international accounting standards.
11.1. Accrued expenses and deferred income this item displays the costs relating to the financial year and for earlier years, but the date for payment of the balance sheet date are not yet joined, except that in accordance with international financial reporting standards include the fixed financial obligations at fair value or amortized acquisition costs. This item shall also in accordance with international accounting standard 17-estimated accrued rent payments.
This item shall also show the income which has been received by the bank until the end of the reporting year, but relating to the next financial year.
11.1. The provision under this item displays the savings anticipated pensions URu.tml. commitments relating to the financial year and for earlier years which meet 37. International accounting standard.
17.10. tax obligations this item displays accruals deferred tax liabilities, as well as the current corporate income tax obligations in accordance with international accounting standard 12.
17.11. Other liabilities this item displays all other liabilities that should not be present in other balance sheet liability items, such as assigned, but not dividends paid.
18. Capital and reserves presented under this item 18.1. all funds belonging to shareholders who invested in the bank's share capital and accumulated (lost) its activity.
18.1.1. Share capital this item shows the nominal value of the shares paid in total.
18.1.2. Share premium this item displays the sales price of the shares, the excess over the nominal value, excluding fees accumulated funds to pay.
18.1.3. own shares This position with the minus sign shows the recovered own shares.
18.1.4. Reserve capital and other reserves this item displays the funds created from the reporting year and prior year in profit, equity contributions, contributions of the accumulated funds to pay new stock release. Here are presented the General risk reserve and other reserves created from the reporting year and prior year earnings.
18.1.5. revaluation reserves: 18.1.5.1. fixed asset revaluation reserve, including the revaluation of fixed assets fair value result in accordance with international financial reporting standards set 18.1.5.2. available-for-sale financial asset revaluation reserve, including profit/loss from available-for-sale financial assets fair value change, 18.1.5.3. net foreign exchange differences changes and difference of such changes at the beginning and end of the year the buffer amount under 21 international accounting standard established 18.1.5.4., hedging instruments revaluation reserve, including hedging instruments fair value changes, if a bank uses a cash flow hedge, 18.1.5.5. hedging instruments revaluation reserve if a bank uses net investment in a foreign company, hedging 18.1.5.6. intangible assets revaluation reserve in accordance with the international accounting standard 38..
18.1.6. Previous years retained earnings/loss under this item displays the previous years retained earnings remaining in the bank after the share capital, capital reserves and other reserves topping and dividend distribution. Here are also to be included in the previous year.
18.1.7. Profit/loss under this item show a profit before its distribution in accordance with the decision of the general meeting or loss.
19. Off-balance sheet items contingent liabilities 19.1 (contingen to liabilit) this item displays the bank's potential obligations under 37. International accounting standards, which incurs various transactions.
19.1.1. Guarantees (warranties) presented under this item of the guarantee (warranty) and assets pledged as third party enforcement obligations.
19.1.2. other contingent liabilities this item shows acceptance of the endorsement, but the acceptance of commitments approved for credit of irrevocable URu.tml. contingent liabilities.
19.2. Off-balance sheet liabilities to clients (commitment) this item includes all the bank's off-balance sheet irrevocable commitments to customers, which can cause hazard.
19.2.1. Obligations of asset sales with repurchase option this item show commitment from the sale of assets transactions with repurchase option, which is not recognised in the balance sheet.
19.2.2. the other off-balance-sheet commitments this item is presented in the context of the supply of credit, contracts for the purchase of assets for the future, contracts for the deposit placement in the future, in the context of open credit, liability for fixed assets and intangible assets acquisition, lease liabilities URu.tml. commitment.
20. special conditions 20.1. Bank assets shown in the balance sheet item, even if the bank has pledged them to them as your own or third party guarantee or otherwise betrayed it, maintaining control over these assets as security to third parties.
20.2. the Bank shall not include in its balance sheet or assets pledged as collateral it seized assets, unless they are incurred by placing deposits in the bank.
20.3. If more banks jointly issued to one credit (called a syndicated credit), then each of the bank's balance sheet is presented only the syndicated credit part that it has issued. If the bank guaranteed syndicated loan amount exceeds the amount that the bank has issued the memo, the excess section of the "contingent liabilities".
20.4. The assets that the bank administers in its own name for the customer if the bank acquired such assets property rights legal approval and obligations resulting from them does not present the balance sheet, but listed in an annex, distributed over the respective assets and liabilities.
20.5. Assets acquired on behalf of clients, the client does not show the bank's balance sheet.
20.6. If the bank involved in the agreement on the sale of the asset repurchase or reverse repurchase facility, the following transactions are presented in accordance with international accounting standard 39..
Vi. Profit or loss statement 21. Income statement items layout sample 21.1 21.2. Interest income interest expense 21.3.21.4. Dividend income Commission income 21.5. Commission expense 21.6. Net realized profit/loss from the acquisition value of the amortized rate financial assets and financial liabilities. Net realized profit 21.7/losses on available for sale financial assets 21.8. Net profit/loss from held for trading financial assets and financial liabilities 13.6. Net profit/loss from classified as fair value financial assets evaluated and the financial commitment with the presentation of profit and loss statement 21.10. Changes in fair value hedge accounting in 21.11. Foreign currency trading and revaluation gains/losses 21.12. property, plant and equipment, investment property and intangible assets of derecognition Pelna/zaudejumi. Other income 21.13 21.14 21.15.. other administrative expenses depreciation, 21.16.

21.17. Accrual of debts building unsafe result 21.17.1. expenditure savings 21.17.2 savings decline for. income 21.18. Impairment loss 21.18.1. Amortized acquisition costs the acquisition value of the prized, valued in and of available-for-sale financial assets impairment loss 21.18.2. property, plant and equipment, investment property and intangible assets depreciation 21.19. Profit/loss before tax of 21.20. calculation of the corporate income tax 21.21. Profit/loss 21.22. Profit/loss per share VII. Explanation of income statement items 22. Interest income
This item displays the year in interest income and similar income from banking operations, including all of the income from the assets shown in the balance sheet item 15.1.1-15.1.7, regardless of income calculation method, t.sk. income arising from a discount amortizēj for assets acquired by the value that is less than the face value, which the bank will receive the assets would come back. As a percentage of revenue reductions include expenses arising from the amortizēj bonus for assets acquired by value greater than face value, which the bank will receive the assets would come back.
As interest income report income resulting from the agreement on the sale of the asset repurchase (repo) as a result of active buyer, amortizēj the positive difference between the sales price of the assets purchased and the purchase price.
As interest income is presented for the purpose of hedging in the futures revenue broken down according to the actual agreement and essentially similar percentages.
This item also includes interest like commissions and service charges, calculated on the basis of the requirements laid down in the contract amount and/or the term of the contract.
23. Interest expenditure under this item displays the year in interest expenses and similar expenses from bank transactions, including all expenses on commitments presented in the balance sheet under 15.2.5.15.2.1.-regardless of the expense calculation method, t.sk. expenses incurred in respect of the amortizēj discount derived value that is less than the face value, which the bank pay, payment of the obligation due. As interest expense reductions include income arising from the amortizēj a bonus for commitments derived value that is greater than the face value, which the bank pay, payment of the obligation due.
As interest expenses presented in the costs incurred by the agreement on the sale of the asset repurchase (repo) assets resulted in renaming, amortizēj a positive difference between the purchase price of the assets sold and the sales price.
As interest expenses is presented for the purpose of hedging in the futures, broken down according to the actual agreement and essentially similar percentages.
This item also includes interest like commissions and service charges calculated on the basis of the obligations laid down in the contract amount and/or the term of the contract.
24. Dividend income from investments is presented under this item, as reflected in the balance sheet.-15.1.3 15.1.5. and item, received 15.1.13 and receipt of dividends and other similar income.
25. Commission income and expenses these items included in the year incurred the amount of Commission and other similar income (expenses) (received) rendered services, t.sk. Commission on guarantee (guarantee), credit management, other lenders, operations with financial instruments on behalf of clients for payment operations carried out, the financial instrument for the management and storage of values, as well as Commission on foreign exchange transactions, coin and precious metal purchase/sale clients URu.tml.
26. the net realized gain/loss of amortized acquisition value assessed financial assets and financial liabilities this item reports profits/losses on held-to-maturity investments and other amortized acquisition value prized financial assets sales or other forms of removal from the balance sheet, as well as amortized acquisition value of financial liabilities valued sales.
27. Net unrealized gains/losses on available for sale financial assets this item shows the previous reporting periods of the balance sheet under "revaluation reserves" reflected in gains/losses on available-for-sale financial assets fair value, if available-for-sale financial assets are sold or otherwise excluded from the balance.
28. Net profit/loss from held for trading financial assets and financial liabilities this item displays the resulting revaluation gains/losses and realized gains/losses on financial instruments listed.
29. Net profit/loss from classified as fair value measured financial assets and financial liabilities with the presentation of profit and loss statement under this item displays the change in fair value of financial assets and financial liabilities that are classified as fair value estimated by the presentation of profit and loss statement. This item shall also realized gains/losses on financial instruments listed.
30. Changes in fair value hedge accounting on this item reflect the revaluation at fair value in financial derivatives which hedge accounting is used, and against the risks of limited items revaluation at fair value, with the exception of the results and the balance sheet item 15.1.8 15.2.7. reported changes.
31. foreign currency trading and revaluation gains/losses under this item displays the profit/loss from trading in foreign currencies and foreign currency-denominated assets and liabilities revaluation gains/losses.
32. property, plant and equipment, investment property and intangible assets of derecognition of the profit/loss under this item displays the profit/loss from property, plant and equipment, investment property and intangible assets of derecognition, i.e. disposal of assets or where the use or transfer of assets is not expected in the future economic benefits.
33. Other income/expenditure these items show the income and expenses related to the bank's core business, but is not reportable under 22-32. As other income interest received is presented. As other expenses presented the fine paid, bank fees and costs (t.sk pielīdzināmo. Members of the Association of Latvian commercial banks fee and payment Commission).
34. Administrative expenses this item displays the staff remuneration, social security costs, taxes (t.sk. real estate tax and other taxes other than corporate income tax) and other administrative costs.
35. Wear of this item displays the property, plant and equipment, investment property and intangible assets depreciation.
36. The accrual of debts building unsafe results presented under this item costs savings not secure debts relating to the financial year. In addition, this item includes the losses resulting from the write-off of assets, if they have not previously been provisioned or created stocks proved to be less than the amount of the disposal. This item shall also not safe in previous years debt stocks reduction created, as well as income from previous years of recovery of assets written off.
37. The value of the damage this item displays the amortized acquisition costs the acquisition value of the prized, valued in and of available-for-sale financial assets impairment loss.
This item shall also show the property, plant and equipment, investment property and intangible assets for impairment.
38. Corporate income tax this item displays the corporate income tax relating to the financial year.
39. Profit/loss under this item show a profit before its distribution in accordance with the decision of the general meeting or loss.
40. Profit/loss per share this item bank whose shares are publicly traded, lists both the basic and the adjusted profit/loss per ordinary shares in accordance with the international accounting standard 33..
VIII. Cash-flow statements 41. Cash flow statement shows cash and its equivalent income and charges in the year to assess the bank's ability to generate cash and cash equivalents liabilities.
42. the money is considered a cash balance requirements of the bank, to demand and requirements with the remaining repayment period up to three months with central banks and credit institutions. The cash balance will be reduced by obligations to the institutions referred to in this paragraph, on request, and with the remaining repayment period up to three months.

43. the cash equivalents are to be considered as highly liquid short-term investments, i.e. those that short period of time can be converted to cash and there is little chance that its value will change significantly. Usually, the investment is considered cash equivalents only if, from the date of purchase until the deletion (repurchase) residual maturity is short, such as three months or less.
44. the Bank's annual accounts are presented and explained in the cash flow statement, cash and cash equivalent components.
45. The cash flow statement shows cash flow separately to the banks operating, investing and financing activities in accordance with international accounting standard 7.
46. the sample cash flow statement using the indirect method, is given in annex 2. The Bank may also apply the direct method in preparing the cash flow statement.
IX. changes in capital and reserves report 47. changes in capital and reserves in the report, which describes the change in the net assets of the bank, produce: 29.3. bank profit/loss;
47.2. gains/losses that are directly included in the balance sheet item ' revaluation reserve ', and their total;
47.3. the change in accounting policy cumulative effect and significant bug fixes;
47.4. transactions with shareholders, related to the issue of shares and the deletion of the same stock repurchase and sale, as well as the cost of the dividends;
29.5. previous years retained earnings/loss for the reporting period and at the beginning and end of this score changes in the reporting year;
29.6. each share capital paid in kind of the shares comprising the book value, share premium, reserves and other reserves the equity statement at the beginning and end of the year, explaining each change.
48. changes in capital and reserves reporting sample provided in annex 3.
X. valuation rules 49. the financial statements shall be drawn up in accordance with the following general principles: 30.5. assuming that the bank will operate in the future (the going concern principle);
30.6. using the same accounting and valuation methods used in the preparation of the previous annual report (coherence or consistency of principle);
30.6. the evaluation shall in all cases be carried out with due caution (the precautionary principle), subject to the following conditions: 49.3.1. include only a reference year of profit, that is, the income/expenses are presented, taking into account the conditions that existed at the balance sheet date, 49.3.2. takes into account any liabilities relating to the financial year and the previous financial year, 49.3.3. takes into account any write-down and amortization/depreciation amount regardless of whether the reporting year a loss or a profit;
49. in the report reflect the income and expenses relating to the financial year, regardless of receipt or payment date (accrual basis);
30.8. report reflecting all relevant information on transactions and events in the reporting year (materiality principle). Information is material if its non-disclosure could affect the user further decision-making;
30.8. assessing the assets and liabilities and their components separately;
49.7. each report the beginning of the year the balance in accordance with the preceding financial year closing balance. The beginning of the year the balance sheet may differ from the shareholders ' meeting approved the previous year balances, if in accordance with international financial reporting standards are specified adjustments of previous accounting periods.
50. If using the principles referred to in paragraph 49, between some of them conflict, individual transaction or event and registration is carried out by favouring the precautionary principle and the principle of materiality.
51. In preparing the financial statements, bank management may derogate from the principle referred to in paragraph 49, only justified for reasons of substance and impact on the bank's financial position, the results of its operations and cash flows explains in the annex.
52. transactions and events the bank reflects the financial statements, taking into account their economic content and nature, not merely the legal form.
53. the assets and liabilities show a value which should not be reduced by deducting from the value of the assets less the value of the obligations or liabilities of the values of the asset value, except where required or permitted by the international financial reporting standards.
54. the profit or loss in the statement of income and expenses may not be mutually set off except when required or permitted by the international financial reporting standards.
55. the assets and off-balance-sheet commitments if they are provisioned unsafe debt and off-balance-sheet commitments, this report shows the savings value.
56. Assets, liabilities and off-balance-sheet items in foreign currency is revalued the Latvian currency after the Latvian Bank foreign exchange rate on the last day of the year. With the change in foreign exchange rates relates to the value of assets and liabilities, changes in the monetary unit of Latvia reflects the income statement or the balance sheet item "revaluation reserves" in accordance with international accounting standard 21.
57. In assessing the financial position of the bank and its performance, having regard to the potential damages that may occur due to events if they can appreciate. Unforeseen developments are the conditions or situations that result (profit or loss) will be known only when these conditions or situations in the future or uncertain does not materialise. Banking it mainly is associated with off-balance-sheet commitments over the future. If an unexpected event results cannot be assessed and included in the balance sheet and the profit and loss statement, the existence of these events explain attachment, t.sk. provides information about the nature of the event and the factors that can adversely affect the future operations of the bank and possible damage.
58. If, between the end of the year and the date on which the annual accounts have been approved for issue, received information that provide evidence of conditions that existed at the balance sheet date, the following events take into account in the valuation of assets and liabilities.
59. Accounting policies the bank determines the type of each financial instrument valuation method and apply it consistently. Financial instruments are classified as follows: 59.1. fair value estimated financial assets or financial liabilities with the presentation of the income statement: 59.1.1. held for trading financial assets or financial liabilities classified as 59.1.2. fair value measured financial assets or financial liabilities with the presentation of profit and loss statement;
59.2. available-for-sale financial assets;
59.3. loans and receivables;
59.4. held-to-maturity investments.
60. All items of the financial statements, the assessment shall be carried out on the basis of international financial reporting standards, without prejudice to the provisions of paragraph 3.
The content of annex XI. 61. Annex shall include the following, as well as other points of these regulations on the content of the attachment specified and international financial reporting standards with the requested information.
62. the explanation provided in the accounting policy for an explanation of all the most important accounting policies used in preparing the financial statements, URt.sk.: 62.1. criteria and assumptions applied for recognition of balance sheet items in the balance sheet or off;
62.2. balance sheet and off-balance-sheet items valuation principles;
38.7. income and expense accruals and recognition policy;
38.8. criteria for the classification of financial instruments occurs in 59 categories referred to, as well as the criteria and limits for possible reclassification of such assets;
62.5. methods and significant assumptions used in the fair value of financial instruments;
38.9. hedging relationship and suspension of the recognition policy and accounting principles;
62.7. accrual of non-secure debts building principles, not recoverable debt write-off;
39.0. error of relating to previous accounting periods, the corrections procedure;
39.1. the presentation of changes in accounting policies;
35.10. items expressed in foreign currency, conversion shall be presented the Latvian units of currency used in the course.
63. Credit risk provides the following information about the bank's exposure to credit risk: 39.2. If information is available that the carrying amount of a financial asset does not reflect its actual exposure to credit risk, the bank presented such a financial asset's carrying amount and value, which reflect the real financial asset's exposure to the credit risk, that is, the value of financial assets that is not reduced by the fair value of the security or on another value, which is determined taking into consideration either legally justified the mutual claims and liabilities of the agreement , or other credit risk-reducing factors. Separately, the fair value of the collateral;
39.3. If bank credit risk assessment using internal models or other methods, such as internal or external rating system for the assessment of the counterparty, it provides information on the model or other methods of substance and exposure to credit risk of the bank, determined using the corresponding model, or other method;

63.3. reveal significant balance and concentration of credit risk off-balance-sheet items of geographic regions (i.e., country, group of countries, national regional URu.tml.), a group of customers (i.e., Central Government, local government, State enterprises, private companies, individuals URu.tml.) and economic sectors.
64. the assets, liabilities and off-balance-sheet items, breakdown by currencies show active commitment and off-balance sheet items, breakdown by foreign currency, subject to the principle of relevance, as well as the significant foreign currency net open position, t.sk. Gold net positions, equity ratio and bank foreign exchange position and the total net gold position of the total amount of the net ratio of capital and reserves.
65. The Bank's liquidity assessment of Bank liquidity, asset and liability balances presented in off-balance-sheet items according to their remaining repayments, or delete terms in the following time intervals: on request, up to one month (inclusive), from one month to three months from three months to six months from six months to one year, from one year to five years, five years or more. The Bank may use other time intervals by dividing or combining these time intervals, taking into account the principle of materiality. In addition to the obvious assets and liabilities with unspecified retribution, execution or maturity date the corresponding maturity band criteria and assumptions used.
66. Interest rate risk in order to assess the potential losses that may arise to the bank, the change in interest rates, produced assets, liabilities and off-balance-sheet items according to the distribution of the shorter of the remaining repayment, settlement, maturity, or to the next interest rate change date in time intervals: on request, up to one month (inclusive), from one month to three months from three months to six months from six months to one year , from one year to five years, five years or more. The Bank may use other time intervals by dividing or combining these time intervals, taking into account the principle of materiality.
67. Financial assets whose carrying value is different from the fair values Of those financial assets whose carrying amount differs from the true value, provide the following information: 67.1. If financial assets must be valued at their fair value, but this is not done, this fact is discovered, explaining, for any reason, such financial assets are measured at fair value;
67.2. If financial assets must be valued in the acquisition value and amortized book value is higher than their real value, explains the reasons why it was not recognised financial assets impairment losses, as well as providing objective evidence that financial assets will regain at least their carrying amount;
67.3.67.1 and 67.2. is presented in paragraph financial assets the carrying amount and fair value, indicating the relevant balance sheet item that includes the financial asset.
68. Pledged assets provides information about the assets the bank has pledged them as security for their own or of third parties, indicating the total amount of the obligations, as well as for each connection and each off-balance sheet item presented their assets, which pledged as security.
69. the assets and liabilities management clients Where confidence is essential operations, provides information on the types of assets that the bank is in the name of the client, and the corresponding obligations.
70. Transactions with related parties Found ways of the business, about which the bank has made to related parties, t.sk. guarantees (guarantees) issued in that person's performance.
71. who and the requirements to request against central banks separately presented cash and balance in the operating account and other accounts with the central banks, which are freely available to the bank.
72. Credit provides information on the types of credits, t.sk. on financial leasing, indicating the value of the credit before it cuts up stocks uncertain debts, the provisions do not secure debts, as well as other information that permits to evaluate the credit recovery options.
73. Derivative financial instruments provide information on financial derivatives the notional core value and book value, indicating whether it is included in the assets or liabilities in the balance sheet. By providing this information, derivative financial instruments distributed by type (interest, foreign exchange and gold, securities, precious metals (except gold) and other commodities derivative financial instruments), in turn, each type of derivatives is divided as follows: 73.1. outside the regulated market traded derivative financial instruments: 73.1.1. Futures (forward) 73.1.2. swap agreements (swap), 73.1.3. buy options (options), 73.1.4. sold options (options);
73.2. regulated market traded derivative financial instruments: 73.2.1. the purchased Futures (Futures), 73.2.2. sold futures (Futures), 73.2.3. buy options (options), 73.2.4. sold options (options).
In addition to provides information about each type of derivatives, including the nature of the essential conditions and time-limits laid down in the Treaty, which may affect the amount of future cash flow, time and certainty.
74. Debt securities issued in the year presented the debt securities issued by a number of denominations and maturity, these debt securities carrying amount at the beginning of the financial year and at the end. Separately, the report during the year, buy his way out of debt securities. If the bank issued mortgage mortgages, here provides an overview of mortgage bonds the cover registry, including the Commission's "rules on mortgage bonds the cover registry" the information you requested.
75. Capital and reserves represent the registered and paid-up share capital, indicating the type and nominal value of shares, as well as each kind of shares bought back the same amount of shares and par value. If the reporting year have been paid share capital changes, reveal the shareholders that made substantial investments in fixed capital or substantially reduced their investment in it. Indicate the number of the bank's shareholders and provide information about them to shareholders and related shareholder groups (first name, last name, or the name of the individual contribution), which directly or indirectly controls 10% or more of the capital or of the voting rights.
76. Subordinated liabilities for each child received loans amounting to more than 10 percent of the total amount of the underlying obligation, the amount of the loan, the lender disclosed, interest rate, currency, date of conclusion of the contract on the loan and the repayment period, the conditions which allow you to require early repayment of the loan, the provisions of the child the opportunity to convert the respective subordinated liabilities fixed capital investment or other obligations and following guidelines. In addition to discovering the rest of the child received the loan conditions.
77. Off-balance sheet items off-balance-sheet commitments grouped according to their nature and character, some showing the related third-party liabilities, as well as other commitments, which are at risk, and providing information about the connection. Obligations arising from transactions on the sale of assets with a repurchase option, displays the possible repurchase of the assets.
78. Interest income and expenditure reflects the interest income by type (interest income from claims against credit institutions and central banks from the rest of the customers requirements for credits issued from debt and other fixed income securities and other similar income) and interest expenses by type (interest expense on liabilities to credit institutions and central banks, for the rest of the customers of the bank deposits, debt securities issued , in the context of commitments and other similar expenses).
79. the Commission income and expenditure presented to the Commission's income and expenses and fees for the services provided and received by type.
80. the administrative expenses administrative expenses are presented by t.sk. staff remuneration, social security costs, taxes and other administrative costs.
81. Losses on unsecured debts show changes to savings not secure debts during the reporting period, i.e., the balance at the beginning of the year, additional savings, reduction of stocks, t.sk. write-off of the debts, lost balance at the end of the reporting period, separate presentation of transactions with related parties created stockpiles. Provides information about the credit, which has stopped the interest accumulation, total and clear up the credit value of the used methods. Displays the reference year scrapped irrecoverable debt.
82. taxes

Provides information about the reporting year paid the amounts of taxes and levies by types of taxes and fees and received tax incentives and deferred taxes. Balance sheet items included in the tax and fee amounts, calculated in the absence of money, fines and other State budget and local budgets or due to overpayments shall be presented according to the types of taxes and fees.
83. the breakdown of income by geographical regions provides information about the profit or loss account items in income distribution in the geographical regions in which the bank carries out transactions with foreign affiliates. The following information shall be provided, if the amount of income in the regions concerned is essential.
84. Capital the capital adequacy calculation are presented in summary, subject to the Commission's "capital adequacy calculation rules".
85. the average number of employees in the report presented to the annual average number of employees by category of personnel.
86. the remuneration of the bank Council and Board members and deals with them presented the Council and members of the management board the total remuneration paid, t.sk. pay for other functions, as well as the Council and the members of the Management Board issued an advance loan guarantee (guarantee) URu.tml. transaction totals.
87. If, between the end of the year and the date on which the annual accounts have been approved for issue in the events that refer to conditions that arose after the balance sheet date, and they are so significant that, without providing information about those accounts would be affected users ' ability to evaluate these reports and make decisions, the annex provides information on the nature of each such event and estimate the financial consequences or notification that such an estimate cannot be made.
88. the annex shall clearly indicate the fact that the financial statements prepared in accordance with international financial reporting standards approved by the European Commission, as well as disclose information when significant differences between this prepared financial statements and financial statements, which are fully prepared in accordance with the international accounting standards Board issued international accounting standards, financial reporting standards and international financial reporting interpretations Committee's interpretations of standards. Significant difference, a description of each of these differences and differences in the financial estimate.
XII. Additional requirements for the preparation of the consolidated annual report and the submission of the agenda 89.27, which international accounting standards in the cases provided for in is released from the consolidated annual report for the preparation of the individual annual accounts are presented in the consolidated annual accounts preparation not a justification, as well as its parent company (bank) who prepare consolidated accounts, the name, the registration number of the enterprise register of the Republic of Latvia and the registration address.
90. the Bank shall prepare the consolidated annual report must be submitted to the Commission, not individual bank annual report.
91. The consolidated balance sheet, off-balance sheet and the consolidated profit and loss statement can be made on the basis of this provision in paragraph 15 and 21 of the specimens. Consolidated cash flow statement and the consolidated capital and reserves changes shall be prepared in accordance with the provisions of chapters VIII and IX. The minority shareholders ' interests reflect the composition of the capital and reserves separately from the parent's capital and reserves. The resulting consolidation negative goodwill immediately recognised in the consolidated income statement in a separate item. The Bank can hide individual items, if they are not essential or not reporting makes consolidated financial statement items, as well as to create a more transparent in that report items on a different layout, but in any case the roles information recording must comply with international financial reporting standards.
92. On the basis of the Commission's rules, regulations, the bank, which shall prepare consolidated financial statements, develop and approve the preparation of consolidated financial statements, as well as establishing internal control system that ensures the timely receipt of information fair for group companies.
93. In preparing the consolidated financial statements comply with the methods of consolidation used the principles of coherence and use them consistently from year to year. Depart from this principle may only in exceptional cases. Any such cases, as well as the reason for the change in the consolidation method and the change's impact on the consolidated financial statements items explains the consolidated annual accounts.
XIII. Consolidated annual report in annex 94. The consolidated annual accounts include explanatory information for the Group and the bank. Information about the bank and the Group prepared pursuant to the requirements of chapter XI. If the information about the group are not significantly different from the information on the bank, the following information about the group can not be presented separately.
95. the following shall be inserted in the annex, as well as other points of these regulations on the content of the attachment specified and international financial reporting standards required information: 95.1. consolidation methods used, and the criteria for fixing it;
95.2. group registration of business names and addresses, each mode of operation of a subsidiary, as well as the share capital of the subsidiary (share of vote in each subsidiary), which got a group companies and persons acting in their own names but on behalf of the company or of the group. Indicate the methods used in the subsidiary's financial statements for each of the indicators for inclusion in the consolidated financial statements;
the Group's joint ventures and 95.3. group related company names, addresses and registration activities. Provide joint management of joint ventures of the group. Presented at the joint venture of the Group and the Group of associated undertakings the share capital, which acquired group companies and persons acting in their own names but on behalf of the company or of the group. Indicate the methods used and the joint venture participation group group related company equity available for the consolidated financial statements;
95.4. the participation in companies included in the consolidated financial statements, balance sheet value and the name of the company;
95.5. company name, registration address, and amount of capital and reserves, which the companies in the group are not essential or group companies own less than 20 percent of the share capital or voting shares, as well as of the balance sheet value of this participation and interests in the share capital of the company. The following information is presented, if not substantial;
95.6. positive goodwill allocation, indicating the specific companies, as well as positive the amount of goodwill at the beginning of the year, its revaluation review year and remaining value at the end of the accounting year;
95.7 the same quantity of shares., nominal value and book value, which acquired the same bank, its subsidiary, or a person acting in his own name, but the bank or its subsidiaries, or in good.
XIV. Transitional provision 96.15.1.8 15.2.7., 10.4., and 17.7 points applicable to the relevant European Commission regulations laying down 39. Between folksy accounting standard application for portfolio hedging (hedging a portfolio), entry into force.
XV. Closing questions, 97. Rules applicable to the bank when preparing the annual accounts and consolidated accounts, starting with the 2006.
98. To recommend the bank to apply the rules, the preparation of the 2005 annual report and the consolidated annual report.
99. With the entry into force of these regulations shall lapse to the Council from the Commission of 21 December 2001 decision No 24/3 approved "Bank of the year reporting rules", the Council of the Commission of 21 December 2001 decision No 24/7 approved "Bank consolidated reporting rules", the Council of the Commission 30 April 2004 decision No 98 approved "investment brokerage company in the preparation of the annual accounts" and the Council of the Commission of 16 July 2004 decision No 158 "approved investment management companies for reporting rules".
Financial and capital market Commission, the President of the U.S. When the annex 1 financial and capital market Commission 24.02.2006. Regulation No. 46 the terms used in the rules 1. Financial instruments (financial instrument): 32. International accounting standard within the meaning of paragraph 11.
2. Financial assets (financial asset) — 32. International accounting standard within the meaning of paragraph 11.
3. financial commitments (financial liability) — 32. International accounting standard within the meaning of paragraph 11.
4. Equity instruments (equity instrument): 32. International accounting standard within the meaning of paragraph 11.
5. Derivative financial instruments (the counterparties) — 39. international accounting standards within the meaning of paragraph 9.
6. the estimated fair value of the financial assets or financial liabilities with the presentation of profit and loss statement (financial asset or financial liability at fair value through profit or loss) — 39. international accounting standards within the meaning of paragraph 9. These include:

6.1. Trade held financial assets or financial liabilities (financial assets or financial liability held for trading);
6.2. upon initial recognition classified as fair value estimate with the presentation of profit and loss statement (in the text of the provisions, classified as fair value estimated by the presentation of profit and loss statement).
7. Held-to-maturity (held-to-maturity) investments — 39. international accounting standards within the meaning of paragraph 9.
8. Loans and receivables (loans and receivable) — 39. international accounting standards within the meaning of paragraph 9.
9. Available for sale (available-for-sale) financial assets — 39. international accounting standards within the meaning of paragraph 9.
10. Fair value (fair value): 32. International accounting standard within the meaning of paragraph 11.
11. The Depreciated value of acquisition (amortised cost) — 39. international accounting standards within the meaning of paragraph 9.
12. the method of interest (effective interest method) — 39. international accounting standards within the meaning of paragraph 9.
13. Impairment loss (the loss of impairmen) — 36. international accounting standards within the meaning of paragraph 6.
14. Book value (carrying amount) — 36. international accounting standards within the meaning of paragraph 6.
15. Hedging (hedging) — 39. International accounting standard within the meaning of paragraph 71.
16. Subsidiaries (subsidiary entity) — 27. international accounting standards within the meaning of paragraph 4.
17. the parent (parent entity) — 27. international accounting standards within the meaning of paragraph 4.
18. The associate (associate entity): 28. international accounting standards within the meaning of paragraph 2.
19. Goodwill (goodwill)-3. international financial reporting standard in paragraph 51 (b)).
20. Investment property (investment property): 40. international accounting standards within the meaning of paragraph 5.
 
Annex 2 financial and capital market Commission Regulation No 46 24.02.2006. Cash flow statement for the year 200 ___ (period) Annex 3 financial and capital market Commission 24.02.2006. Regulation No. 46 changes in capital and reserves reporting