Financial and capital market Commission Council decision No 21/4 Riga, 2001 November 30 About "credit unions annual report preparation of the terms of the" approval based on financial and capital market Commission Act 6., 7., 8., and article 17, credit unions, article 23 of the law of the financial and capital market Commission Council decides: 1. To approve the "credit unions annual report preparation rules" (annex).
2. Determine that the rules enter into force by January 1, 2002.
Financial and capital market Commission, the President of the U.S. When the credit unions annual report preparation of the terms "credit unions annual report preparation rules" (hereinafter-the rules) developed on the basis of the financial and capital market Commission and the law on credit unions Act. Credit unions operating under the credit unions Act, these rules must be followed when preparing the annual accounts and the accounts of the sort.
1. General questions 1.1. the annual report must include a balance sheet and off-balance-sheet items, profit and loss account and annex (hereinafter – financial reports), which you want to create a single package, as well as credit unions Council, if any, and the Executive Board (hereinafter control) report, information on the management of credit unions and credit unions notice management responsibility.
1.2. balance sheet, off-balance-sheet and the profit and loss account item layout must conform to the rules in paragraph 4 and 6. Additional items should be presented, if they do not meet the aforesaid paragraphs items listed. Items in point 4 marked with four digits, may not be produced as separate items if they are not essential or not reporting makes the balance sheet and off-balance-sheet items more transparent, but in this case, the information requested should be presented in the annex.
1.3. the annex must include explanatory information on the balance sheet, off-balance sheet, profit and loss account items, comments on the risk control and management, related to credit unions, other information should be disclosed, which is significantly affected by or can significantly affect credit unions in financial position and performance of the evaluation.
1.4. Each balance sheet, off-balance sheet, profit and loss account item the figure relating to the presentation of the annual report and the report of the previous year. The first reference year should reflect the financial year only. Balance sheet, off-balance sheet, profit and loss account items that do not have the pointer must be presented only if the previous annual report has been presented the table of items.
1.5. The annual report of the monetary unit is the monetary unit of the Republic of Latvia. The annual report should indicate the financial statements presented to the degree of accuracy of the figures.
1.6. Credit unions for each of its years of operation must prepare an annual report, which must comply with the requirements of these provisions, and its financial statements provide a true and fair view of the financial position of credit unions and the results of its operations.
1.7. If pursuant to the requirements of the rules prepared the annual report does not provide enough for a true and fair view of the financial position of credit unions and the results of its operations, in exceptional cases may derogate from certain requirements of these provisions, the following Annex explaining the reasons for the resignation and its impact on credit unions financial position and operating results.
1.8. The financial year shall coincide with the calendar year. The first reference period can be shorter than a calendar year, but can not be more than 18 months. The annual report should be prepared in the national language.
1.9. Credit unions Audit Commission or the credit unions Act, paragraph 2 of article 23 in case the sworn auditor or certified auditor company (hereafter referred to as the Auditor) to prepare an opinion on whether the credit unions annual report financial statements included in all relevant respects, give a true and fair view of the financial position and operating results. Credit unions financial statement and the check must be carried out in the auditor's opinion shall be drawn up in accordance with the International Federation of Accountants issued international audit standards.
1.10. If the auditor's opinion on credit unions is the financial statements with notes, the Auditors have refused to give an opinion or provided a negative opinion, the Credit Union may pay dividends only to the financial and capital market Commission (hereinafter the Commission). The authorization of a credit application must be submitted to the Commission, specifying the expected cost amount of the dividend and the auditor's notes, refusal to give an opinion or negative opinion. The decision to pay dividends for permission to adopt the Commission's Governing Council.
2. the annual report preparation, submission and publication of annual accounts 2.1.2 copies, credit union members ' general meeting (the meeting authorised) protocol statement on approval of the annual report and the auditor's opinion in full in the language of the country 10 days after the general meeting of members (authorised meeting), but not later than 3 months after the end of the reference year must be submitted to the Commission. While credit unions must be submitted to the Commission for credit unions in the auditor's report addressed to the control copy.
2.2. Credit unions annual report, balance sheet and Auditor's opinion shall be published in the credit unions Act, article 23, paragraph 3 of the order.
3. Reports 3.1 annual accounts must include the Credit Union's management report, which should give credit unions the characteristics of the financial situation, news of the anticipated credit unions development and important development measures, as well as news about important events, if any, after the end of the reporting year. In addition, the management report should provide information on credit unions operating significant risks and the risk management policy. The report must be signed by the credit unions Council and Chairman of the Board.
3.2. the annual report must specify credit unions unvald, Chairman of the Council and of the members of the Management Board of the first name, last name, title. This information should also be provided for those individuals who in the year left the post.
3.3. the annual report must also include credit unions control the notice in writing that the responsibility for the veracity of the annual accounts. The notice must be signed by the credit unions Council and Chairman of the Board.
3.4. The notice of credit unions management liability: 3.4.1 that management is obliged in accordance with existing legislative requirements to prepare financial statements that clearly and truly reflects credit unions financial position at the end of the year and the annual activity report;
3.4.2. the management is responsible for the appropriate sort of accounting, credit unions funds, fraud and other fraudulent activities;
3.4.3. or a financial statement prepared in accordance with the consistent accounting methods used and that any derogation from these methods are revealed and explained in the annex;
3.4.4. credit unions or management decisions and assumptions about the preparation of the report have been carefully and wisely.
3.5. If some credit unions or Board member of the Council considers that the annual report is not approved, or raise objections, which he wants to communicate to the Assembly, it should be specified in the notice of credit unions leadership responsibility.
4. The balance sheet and off-balance-sheet items layout 4.1 4.1.1 4.1.2 Which actively. Claims against credit institutions 18.104.22.168. Requirements on demand 22.214.171.124 other requirements 4.1.3 4.1.4 credit debt securities 126.96.36.199. the Latvian Government debt securities registered in the Republic of Latvia 188.8.131.52. bank mortgage mortgages 4.1.5 4.1.6. Intangible assets fixed assets 4.1.7. Prepaid expenses and accrued income 4.1.8 4.1.9. Other assets total assets liabilities 4.2 4.2.1 4.2.2. Liabilities to credit institutions deposits 184.108.40.206. Demand deposits term deposits 220.127.116.11.4.2.3. Deferred income and accrued expenses accruals 4.2.4. commitments and payments 4.2.5 4.2.6. other liabilities capital and reserves share capital 18.104.22.168.22.214.171.124. Reserve capital and other reserves 126.96.36.199. Previous years retained earnings/loss 188.8.131.52 harmonisation. Profit/loss total liabilities 184.108.40.206.3 4.3.1. Off-balance sheet items contingent liabilities guarantees and warranties 220.127.116.11 18.104.22.168 4.3.2 other contingent liabilities in off-balance-sheet liabilities to members. and counterparties 22.214.171.124. Obligations of asset sales with repurchase option 126.96.36.199. the other off-balance-sheet commitments 5. Explanatory notes on the balance sheet and off-balance-sheet items 5.1 5.1.1 Treasury actively clear cash in include a legal means of payment, t.sk. foreign currency banknotes and coins as.
5.1.2. Claims against credit institutions
This item should cover all claims arising from transactions with domestic institutions, as well as claims against the Bank of Latvia. Its claims against credit institutions resulting from debt securities and which comply with the requirements of points 5.1.4 shall be subject to the presentation of balance sheet assets item 188.8.131.52.
Credit Union requirements that can be satisfied without prior request or request deadline is 24 hours or one day shall be subject to the presentation of the balance sheet asset 184.108.40.206. item. Other requirements to the presentation of balance sheet assets item 220.127.116.11.
5.1.3. Credits this item should show all claims arising from transactions with credit unions members, t.sk. financial leasing.
5.1.4. Debt securities under this item should include the total public debt of the Republic of Latvia and the Republic of Latvia the securities registered in the bank released mortgage mortgages.
5.1.5. Intangible assets this item be produced intangible assets, i.e. assets that do not have material, which is kept in the provision of services or for other purposes, if it is expected that credit unions get 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 should also be given advance payments for intangible assets.
5.1.6. Fixed assets this item remaining credit unions owned (t.sk. no purchase and financial lease hire deal resulting) fixed assets, i.e., tangible assets that credit unions provide services used in administrative purposes or lease and intends to use for more than one year, such as land, buildings, vehicles, equipment, URu.tml. active.
Here also display software, which is the electronic equipment or appliances an integral part, as well as credit unions and belonging to the non-purchase of leased asset reconstruction, restore URu.tml. the costs of the asset concerned, improved economic performance, if the asset lease agreement does not provide for the reimbursement of costs and expenses.
This item shall be subject to the presentation of unfinished construction costs and advance payments for fixed assets referred to in this paragraph.
5.1.7. Prepaid expenses and accrued income this item must show credit unions expenses relating to subsequent periods.
Here be presented also in previous years and in the year accrued, but not yet received income, for example, not yet received, but the calculated commissions, interest income, rent URu.tml.
5.1.8. Other assets this item must be shown that active content does not match the other balance sheet items (t.sk. precious metals, precious stones, movable and immovable property is carried as outstanding credit and other collateral claims if the Credit Union intends to sell, as well as tangible assets, which does not use the Credit Union and plan to dispose).
Here also the display without the purchase of the leased asset reconstruction, improvement URu.tml. If the asset lease agreement provides for the reimbursement of costs and expenses.
5.2. Liabilities liabilities to credit institutions 5.2.1. This item should show all the obligations arising from transactions with domestic institutions as well as foreign and international institutions.
5.2.2. Deposits this item should show commitment to credit unions members arising from membership, attracting deposits and other refundable funds.
Here also display commitment to the Government of the Republic of Latvia, as well as foreign and international financial institutions, the credit unions received a credit line.
5.2.3. Deferred income and accrued expenses this item must produce income that relates to the next periods, but received up to the end of the reporting year.
Here you must also produce reports and previous years accrued but not yet paid.
5.2.4. Accruals and payments under this item should show the expected tax savings, pensions URu.tml. costs relating to the financial year and previous years.
Here should also be given special and general provisions for off-balance-sheet commitments.
5.2.5. Other liabilities this item should show all the other obligations that should not be present in other balance sheet items liabilities.
5.2.6. Capital and reserves this item shall be subject to the presentation of all the member-owned funds, which invested in the company's share capital and credit accrued (lost) its activity.
18.104.22.168. the share capital shall be presented under this item of nominal value of shares paid in total.
22.214.171.124. Reserve capital and other reserves this item shall be subject to the presentation of the reserve capital, created from the reporting year and prior year profits, entry fee, the accumulated contributions funds to pay for the release of new shares, as well as other reserves created from the reporting year and prior year profit in accordance with the Statute of the credit unions.
126.96.36.199. Previous years retained earnings/loss under this item should be shown in the previous years retained earnings remaining in the credit unions after the share capital, capital reserves and other reserves topping and dividend distribution. Here are also to be included in the previous year.
188.8.131.52. Profit/loss report must be presented under this item profit before its distribution under the members ' general meeting (the meeting authorised) decision or a loss.
5.3 5.3.1. Off-balance sheet items contingent liabilities (the contingen liabilit) this item should show all transactions involving credit unions head on members ' obligations.
184.108.40.206. The guarantee and warranty guarantees must be presented under this item, the guarantees and assets pledged as collateral for the fulfilment of the obligations of members.
220.127.116.11. the other contingent liabilities this item must indicate the acceptances, endorsements, but the acceptance of the URu.tml. contingent liabilities.
5.3.2. Off-balance sheet liabilities to members and business partners (commitment) this item should cover all the irrevocable obligation to the credit union members and business partners, which may present a risk.
18.104.22.168. the commitment of the active sales with repurchase option this item should show commitment from business, which basically meets the conditions of paragraph 5.4.8.
22.214.171.124. Other liabilities this item must be presented in the context of the supply of credit, contracts for the purchase of assets for the future, contracts for the deposit of URu.tml in the future. commitment.
5.4. special conditions 5.4.1. Credit unions assets must be shown in the balance sheet item, even if the Credit Union has pledged them to them as members of their obligations or securities, or otherwise transferred to third parties as security.
5.4.2. a credit union shall not include in its balance sheet or assets pledged as collateral it seized assets, unless they are incurred by placing deposits in credit unions.
5.4.3. the Credit Union must provide separate accounts for those assets that credit unions administers in its own name the Member, if the credit union obtained the ownership of the assets of legal approval. The following assets and liabilities are not related to the presentation of the balance sheet, but must be specified in the annex, distributed over the respective assets and liabilities.
5.4.4. the assets obtained on behalf of members, the members are not credit unions should be presented in the balance sheet.
5.4.5. The agreement on the sale of the asset repurchase (repo) transactions, including credit unions (vendor) asset sale to the buyer, provided that the buyer of these same assets will be returned to the seller at a certain price to be indicated by the seller or specified later date.
5.4.6. where credit unions involved in the asset sale transaction with repurchase as a salesperson, then: assets sold to 126.96.36.199. continues to show credit unions on a balance sheet, and they must be shown separately in the annex;
188.8.131.52. the sales result received funds (acquisition price) should be presented in the balance sheet as a liability to an asset buyer.
5.4.7. If credit unions involved in the asset sale transaction with repurchase as a buyer, then put the assets must not be presented in the balance sheet, credit unions but the transaction results in the paid purchase price must be presented as claims against the seller of the assets.
5.4.8. Agreement on asset sale with option of repurchase transactions, including credit unions (vendor) asset sale to the buyer, provided that the buyer shall have the right (not obligation) to atpārd these assets to the seller on the purchase price or on other agreed price or at a later date to be specified date.
5.4.9. If credit unions involved in the asset sale transaction with repurchase option as a seller, then the assets should not be sold to show credit unions on a balance sheet, but the amount that is equal to the price at which the parties agreed to repurchase the asset case, to present a memorandum 184.108.40.206. item.
5.4.10. If credit unions involved in the asset sale transaction with repurchase option as a buyer, then the purchased assets should be presented in the balance sheet as assets of the type in question.
6. Profit and loss account item layout 6.1. Interest income interest expense are 6.2 6.3 6.4 Commission income Commission expense. 6.5. Profit/loss from transactions with securities and foreign currency 6.6 other ordinary income 6.7 6.8. Administrative expenses of intangible assets and depreciation of fixed assets/depreciation 6.9. Other ordinary expenditure expenditure savings 6.10. unsecured debt and off-balance-sheet liabilities accrual reduction 6.11 6.12. Long term income investment revaluation gains/losses 6.13. Ordinary activities profit/loss 6.14. extraordinary income extraordinary expenses 6.16 6.15.. Profit/loss before tax calculation 6.17. Corporate income tax 6.18. Profit/loss 7. Explanatory notes on the profit and loss account items 7.1. Interest income this item must be presented in the year incurred interest income and similar income from credit operations, including all of the income from the assets shown in the balance sheet item 220.127.116.11.1.4 – 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 of that credit unions will receive the assets would come back. As interest income should be included in the expenditure incurred, the amortizēj bonus for assets acquired by value greater than par value, of which the Credit Union will receive the assets would come back.
As interest income should be presented in the income from the sale of assets agreed repurchase (repo) as a result of active buyer, amortizēj a positive difference between the sales price of the assets purchased and the purchase price.
This item shall also include the percent of similar commissions and service charges, calculated on the basis of the requirements laid down in the contract amount and the term of the contract.
7.2. Interest expenditure under this item should be presented in the year incurred interest expense and similar charges from credit operations, including all expenses on commitments presented in the balance sheet under item 4.2.1 and 4.2.2, regardless of the expense calculation method, t.sk. expenditure incurred in respect of the amortizēj discount derived value that is less than the face value of that credit unions pay, comes the obligation of payment. As interest expense reduction must include income arising from the amortizēj a bonus for commitments derived value that is greater than the face value of that credit unions pay, comes the obligation of payment.
As the interest expense must be presented to the expenditure 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.
This item shall also include the percent of similar commissions and service charges calculated on the basis of the obligations laid down in the contract amount and the term of the contract.
7.3. Commission income and expenses these items should be included in the reference year and commissions incurred by the like income (expense) (received) rendered services, t.sk. commissions for issuance of a guarantee, the payment carried out operations, operations with securities, foreign currency transactions, coin and precious metal purchase/sale, storage of value URu.tml. operations on behalf of members.
7.4. Profit/loss from transactions with foreign currency vērtspapīriemun this item must be shown: 7.4.1. profit/loss from trading with currency as well as foreign currency revaluation;
7.4.2. profit/loss from trading in debt securities which are not held to the repayment period, and displays the values for the revaluation of securities in accordance with the provisions of paragraph 8.13.
7.5. Other ordinary income and expenses these items should be presented in the other income (expenses) related to the credit unions, but not reportable operating pursuant to paragraph 7.1-7.4 requirements, as well as gains/losses incurred by the moveable and immovable property of the seizures. Like other ordinary income received must be presented a fine. Like other ordinary expenditure must be presented in fines paid by credit unions membership fee and equivalent (t.sk. to the Commission).
7.6. administrative expenditure under this item should show staff remuneration, social security costs, taxes and charges (except corporate tax) and other administrative expenses.
7.7. Intangible assets and depreciation of fixed assets/depreciation under this item should reflect a balance sheet asset and item 4.1.5 4.1.6 the depreciation in the value of assets and depreciation.
7.8. expenditure savings uncertain debts and off-balance-sheet liabilities should be presented under this item expenses reliable stocks for debt and off-balance-sheet commitments relating to the financial year. They consist of special and general provisions for unsecured debts (t.sk. the accrued income) that are listed in the balance sheet assets 4.1.2, 4.1.3 and 4.1.8, 4.1.7. item of expenditure, as well as special and General savings guarantees and other 4.3.1. and 4.3.2. position against a list of off-balance-sheet commitments. In addition under this item should include loss 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.
7.9. Accruals reduction income should be presented under this item in previous years, mentioned in paragraph 7.8. unsecured debts and off-balance-sheet liabilities accrual reductions created, as well as income from previous years of recovery of assets written off.
7.10. long-term investment revaluation gains/losses under this item should show up repayment period for investment debt securities held in the recoverable value of the loss, calculated in accordance with paragraph 8.16 and 8.17 requirements if there is a probability that the Credit Union will not be able to recover all the investment principal and interest due under the terms of the contract. Here should show the increase in the value of investments, which compensates for the profit and loss statement previously included the value of the investment.
7.11. Ordinary activities profit/loss under this item should show credit unions conventional (regular) operating profit/loss from financial service and calculated as the difference between income and expenditure, the calculation does not include extraordinary income and expenses.
7.12. extraordinary income and expenses these items should be presented in the income and expenditure incurred during the year under review the events or transactions that are clearly distinct from the ordinary activities of credit unions and frequent or periodic recurrence in the future is expected.
7.13. Corporate income tax this item must be presented at the corporate income tax for the financial year.
7.14. Profit/loss report must be presented under this item profit before its distribution under the members ' general meeting (the meeting authorised) decision or a loss.
8. The balance sheet and off-balance-sheet items valuation rules 8.1. Credit unions must draw up an annual report in accordance with the following general principles: 8.1.1. assuming that the Credit Union will operate in the future (the going concern principle);
8.1.2. using the same accounting and valuation methods used in the preparation of the previous annual report (coherence or consistency of principle);
8.1.3. the evaluation carried out in all cases with due caution (the precautionary principle), subject to the following conditions: 18.104.22.168. the report includes only up to the balance sheet date for profit, i.e. income show when they already get or mining safe, while expenses are expected to show when they likely 22.214.171.124. consider all potential losses, regardless of their provenance (i.e. those relating to the financial year and for earlier years) even those who became known during the period between the end of the year and the date of preparation of the annual report, 126.96.36.199. takes into account any write-down and amortization/depreciation amount regardless of whether the reporting year a loss or a profit;
8.1.4. the report reflecting the income and expenses relating to the financial year, regardless of receipt or payment date (accrual basis);
8.1.5. 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;
8.1.6. assessing the assets and liabilities and their components separately;
8.1.7. every year the opening balance of the period should be consistent with the previous accounting year closing balance.
8.2. If using the principles referred to in paragraph 8.1, between some of them conflict, individual transaction or event assessment and accounting should be performed, preferring the precautionary principle and the principle of materiality.
8.3. when preparing the annual accounts, the Credit Union's management may derogate from the principle referred to in paragraph 8.1 of the only substantiated reasons, the nature of which and the impact on credit unions financial position and operating results should be explained in the annex.
8.4. Transactions and events in the operation of the Credit Union to reflect the annual report, taking into account their economic content and nature, not merely the legal form.
8.5. Annual report assets or liabilities must produce a value which should not be reduced by deducting from the value of the asset value of the undertaking or deducting from the value of the assets, the value of liabilities, except for the credit unions to be legally justified, such asset or liability value.
8.6. The profit and loss statement income and expenses may not be mutually set off. However: 8.6.1. Cross may be set off against the income (expenses) associated with a particular asset (liability), hedging with the expense (income) from this limited risk assets (liabilities);
8.6.2. Cross may be added into the income and expenses of the assets and liabilities of the Credit Union values, using legally justified right, reduced.
8.7. the assets and liabilities recognised in the balance sheet initially to the acquisition value (original value). Transaction costs that are directly attributable to the acquisition of assets and liabilities, assets and liabilities are included in the purchase price.
5.5. After initial recognition of the asset in the balance sheet, and intangible assets should be valued and should be reflected in the accounts in accordance with the following provisions: 8.8.1. fixed assets and intangible assets that have a limited life, the original value shall be reduced by accumulated depreciation/amortisation is calculated on the basis of the useful life of the assets;
8.8.2. asset reconstruction, enhancement, and restoration costs should be added to the carrying amount of the asset (the amount at which an asset or liability is reported in the balance sheet), if the asset reconstruction, improvement and renewal has led to the improved economic performance of the asset.
8.9. the asset are eliminated from the balance sheet when it disposes of, or when they are no longer in use and disposal of assets, future economic benefits are expected. Gains or losses arising from the disposal of fixed assets or removing from use, defined as the difference between the estimated disposal income and asset tracking. The profit and loss statement the profit or loss should be recognised as income or expense.
8.10. profit or loss resulting from the write-off of intangible assets or transfer, should be determined as the difference between the disposal income and goodwill the carrying amount of the asset and should be recognised as income or expense in the profit and loss statement.
8.11. Debt securities held to the repayment deadline, after initial recognition must be presented in the balance sheet in accordance with the following provisions: 8.11.1. the value of the securities that are purchased with bonus (acquisition value exceeding the value of the securities of the deletion), in the period up to the date of deletion of the securities is gradually reduced in amortizēj of this bonus, and amortised amount must be included in the profit and loss statement;
8.11.2. the value of the securities that are purchased at a discount (deletion of securities exceed the acquisition value), in the period up to the date of deletion of securities must be gradually increased, the amount of the discount, amortizēj and this increase will be included in the profit and loss statement.
8.12. the annex to the annual report referred to in paragraph 8.11 securities purchased with premium or discount, premiums or discounts must be presented in the part that has not yet been depreciated at the end of the year.
8.13. Debt securities which are not held to the repayment deadline, after initial recognition must be presented in the balance sheet in accordance with the following provisions: 8.13.1. securities which are freely available in an active market in which securities are sold, may periodically be revalued at market price (selling price set for the market) in the following order: 188.8.131.52. If market prices of the securities becomes less (greater) than the price, under which the securities are reflected in the balance sheet, the carrying amount of the securities to reduce (increase) according to their market price and value reduction (increase) to the presentation of the profit and loss statement under " Profit/loss from transactions with securities and foreign currency ";
184.108.40.206. If the investment volume of the securities exceeds the market the type typically sold such securities, the market takes forced the sale of the securities, the investor owns the securities of the issuer in the important part and its sales may adversely affect the market, as well as in other cases when the market price does not correspond to the price at which the Credit Union may sell these securities and investment value by applying the market price, is contrary to the precautionary principle then apply the appropriate discount to the market price. Discounted approximately reflect all costs that may be incurred when you sell an investment. If the market price of a discount cannot be determined reliably, the revaluation of investment securities at a discounted market price that exceeds their acquisition cost or market price at which the last assessment is not acceptable.
8.14. Debt securities which are not held to the repayment period, with no quoted market prices, should be assessed according to the value of the acquisition, which must be reduced by the value of the accrued loss.
8.15. One type of the purchase price of the securities to be determined as the weighted average price.
8.16. If there is objective evidence that a loan URu.tml. requirements and to the repayment of the contribution held debt securities carrying amount is greater than its estimated recoverable value, credit unions must determine the value of those assets impairment loss and included in the profit and loss statement, you create a special reserve does not secure debts. Impairment loss of assets should be established where there is a probability that the Credit Union will not be able to receive any amount (principal and interest) due to it in accordance with the provisions of the Treaty.
8.17. If the period referred to in paragraph 8.16 of the impairment loss decreases and the associated reductions may objectively be associated with the incident that took place after the special reserve could not secure debts created (for example, an improvement in the debtor's creditworthiness), active in the amount written off must be renewed, adjusting special reserve unsafe debt account. Renewed asset book value may not exceed the amount which would have been the carrying amount of the asset, if there were no recognized impairment, on the date when the asset is written off. The carrying amount of the asset value adjustment should be included in the profit and loss statement.
8.18. the movable and immovable property is carried as outstanding credit and other collateral claims if the Credit Union intends to sell, as well as other tangible assets, which does not use the Credit Union and plans to expropriate should be evaluated by estimated sales price, which is reduced by the estimated sales cost (i.e., after a clean goal values).
8.19. evaluation of assets that are not included in the provisions of the 8.8-8.18, after initial recognition in the balance sheet to assess the value of the acquisition, which must be reduced by accumulated depreciation of these assets.
8.20. The annual report of the assets and off-balance-sheet commitments if they are created in a special or general provisions for unsecured debts, must be produced, minus the value of these stocks.
8.21. Assets, liabilities and off-balance sheet items in foreign currency should be revalued currency of the Republic of Latvia by the Latvian Bank accounts in foreign exchange rates on the last day of the year. With the change in foreign exchange rates relates to the value of the assets and liabilities reflects the changes to the profit and loss statement.
8.22. Assessing credit unions financial position must take into account the possible losses that may arise 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 will translate into future or will translate into, and which is primarily associated with the disposal of off-balance sheet liabilities in the future. If an unexpected event results cannot be assessed and included in the balance sheet and the profit and loss account, the existence of these events to explain in an annex to the annual report, t.sk. information should be provided on the nature of the event, the factors that can adversely affect future credit behavior and the possible losses.
8.23. If, between the end of the financial year and the date on which the annual report approved at a general meeting of members (authorised meeting), there have been events that provide additional information that can help you assess the amounts that relate to the reporting date to existing circumstances, such events are taken into account for the assessment of assets and liabilities.
9. content 9.1. in addition to the other provisions of this part of the display the content of the attachment requirements contained in the annex should include the following essential qualitative and quantitative information.
9.2. details about the most important accounting policies must provide an explanation of all the most important accounting policies used in preparing the financial statements, t.sk. the criteria for recognition in the balance sheet items of the balance sheet or off-balance-sheet and off-balance-sheet items, evaluation, depreciation/amortization method of calculation. Items expressed in foreign currency, the conversion must be presented by the Republic of Latvia for the monetary units used the course. To explain the accumulation of income and expenditure and recognition policy, both specific and general provision of unsecured debts building principles, lost debt write-off.
9.3. the allocation of assets and liabilities by currency must show a breakdown of assets and liabilities by currency, as well as the significant foreign currency net open position relative to equity capital and total foreign currency net positions relative to equity.
9.4. Pledged assets should provide additional information on the assets of credit unions has pledged them as security for their own or credit unions members ' obligations, indicating the total amount of the obligations, as well as each liabilities and off-balance sheet item showing in detail the assets pledged as security.
9.5. Transactions with related parties to explain credit unions lending transactions with persons associated with the credit unions. The types of transaction should be disclosed, the nature, volume, which the Credit Union has conducted with the Chairman of the Board, the President of the Commission, the Audit Board and the Audit Commission members or their spouses, parents or children.
9.6. Loss from unsafe debt and off-balance-sheet obligations must produce changes in both specific and general provision of unsecured debt and off-balance-sheet obligations during the reference year, that is, the balance at the beginning of the year, papilduzkrājum, savings, t.sk. write-off of the debts, lost balance at the end of the year, showing separately the transactions with related parties created special and general provisions. Explain what types of assets or off-balance-sheet commitments, special and general provisions are created. To show their credit, which has stopped the interest accumulation, total and to explain the credit value of the accounting method used. Be presented in the year called irrecoverable debt.
9.7. Explanation of investment securities 9.7.1. debt securities must be presented for investments Division: 220.127.116.11. stock exchange quoted and unquoted securities;
18.104.22.168. securities that credit unions handle to the repayment deadline and other purposes, explaining the method used.
9.7.2. Explain to the repayment deadline and other securities held for the purposes of evaluation methods, their book value adjustment, if any, have been the year. If the securities market value differs from the value in the balance sheet must be presented to the market value of the securities.
6.1. Fixed assets and intangible assets should be presented for each of the fixed assets and intangible assets acquisition value at the beginning of the year and the end of the year, acquisitions, disposals and other changes during the reporting period, accumulated depreciation/amortisation at the beginning of the year, and the year at the end of the year, book value at the beginning of the year and the end of the year. For each type of asset should be presented in the same assets in use.
9.9. Other assets and liabilities should provide information about the overall structure of assets and liabilities.
9.10. Off-balance sheet items off-balance-sheet commitments must be grouped according to their nature and character, presenting the individual obligations of third party liabilities, as well as other liabilities, which are the risks and providing information on the amounts of commitments and create stocks uncertain debts. Obligations arising from transactions on the sale of assets with a repurchase option should show maturity when the repurchase of assets.
9.11 Rewards credit unions Council and Board members should be presented in the Council and Board members, the total remuneration paid.
9.12. If, between the end of the financial year and the date of submission of the annual report have been events that do not significantly affect credit unions assets or liabilities in the accounting year but which is important to the users decision making, then the event must be found in the annex to the annual report and to provide information on the nature of such events and the impact on credit unions.