The Republic of Latvia Cabinet of Ministers Regulations No. 119, Riga, 28 March, 2000 (pr. No 14, § 12.) amendments to the Cabinet of Ministers of 27 October 1998 No. 421 "the terms of the insurance company's annual report" Issued in accordance with the insurance companies and supervision article 49 of the law on the second part of the draw of the Cabinet of Ministers of 27 October 1998 No. 421 "the terms of the insurance company's annual report on the dialing rules" (Latvian journal, 1998, 322./325.nr.) the following amendments: 1. provisions supplementing with 1.1 and 1.2 of paragraph 1 by the following : "1.1 If these rules accordingly drawn up the information contained in the annual report does not provide a sufficiently clear and true picture of the insurance company needs to provide additional information.
1.2 If the application of these rules does not provide a true and fair view of the insurance company, in exceptional circumstances, derogate from certain requirements laid down in these provisions. Any such resignation shall explain to the annual accounts, specifying the reason and the impact on the company's financial position and profit or loss. Each of the following resigning previously coordinated with the insurance supervisory inspection. "
2. Supplement with 3.9 section as follows: "3.9. profit and loss account technical account for credit insurance (annex 8) — the insurance company that issued the licence in insurance."
3. Delete paragraph 20.2.
4. Supplement with 20.1 points as follows: "Sworn auditor opinion 20.1 added the annual report, which the insurer submitted to insurance supervision inspection."
5. Replace the text of chapter IV, the words "related companies" (fold) with the words "associated companies" (the fold).
6. To express the following paragraph 23: "23. The associate is a company in which the Group companies of the insurer directly or indirectly holding not less than 20 but not more than 50 percent of the voting shares or participation, which gives the right to influence, but not control over decision making."
7. Delete paragraph 24.
8. Supplement with 41.1 points by the following: "(I) passive 41.1 (6.2) item: current year retained earnings — reflects the amount corresponding to the profit and loss account the non-technical account item" review of the year's profit or loss brought forward ", the specified amount. The general meeting of members set a distribution of profits or damages reflect the next annual report. "
9. Supplement with 59.1 points following: 59.1 "technical account life insurance (4) and technical account non-life insurance (3). The item "other technical income" indicates technical income not reflected in other profit and loss account items in the technical account, for example, income from the insurance of other companies to distribute products that interest income from the share premium payments. "
10. Supplement with 62.1 points as follows: "62.1 technical account life insurance (11) and technical account non-life insurance (8). The item "other expenses" indicates technical technical costs that are not reflected in other profit and loss account items in the technical account, such as the Commission on other insurance products distribution company, the payment of interest on a deposit of reinsurers reinsurers. "
11. Add to paragraph 64 of the sentence the following wording: "Those life insurance companies which carry out accident and health insurance, investment income transfer arrangements develop insurance supervision inspection."
12. Express 78. paragraph by the following: "78. Assets and liabilities are shown at their original cost or the purchase price (initial values). The initial value of fixed assets investment in buildings and intangible assets that have a limited life, reduced by depreciation expenses, calculated on the basis of those assets. Fixed asset investment in the building and reconstruction, enhancement, and restoration costs including the asset balance value (original value less depreciation expense) If, after the reconstruction, improvement and renewal of fixed assets have changed economic indicators. If this active real (market) value is not transitory circumstances, become less than the value of the balance sheet, the annual report presented in real (reduced) value and depreciation shall be presented in the profit and loss account. "
13. To supplement the rules by 78.1 points as follows: "If a fixed asset is revalued 78.1 category (for example, building, road transport), then this category is revalued all units."
14. Express 84 as follows: "84. Re-evaluation of fixed assets and investments in respect of land and buildings, not subject to this provision 78. the requirements laid down in paragraph 1, may, at their real (market) value of the asset at the date of the last evaluation in the following order: 84.1. where, in respect of land and buildings and investment asset market price becomes significantly higher than their book value and has reason to believe that the appreciation will neuter It may be revalued at market value, including the value of the balance of the increase in the item "revaluation reserve";
52.3. in respect of land and buildings and investment in fixed assets increase in value should be reflected in the balance sheet, if the increase in value by at least two independent experts and the insurance supervision inspection written permission. "
15. Express 86. paragraph by the following: "86. Insurer's parent company, which has the obligation to prepare consolidated accounts, in its annual report on participation in the share capital of the subsidiaries of the Group and participation in the share capital of the associate evaluated in the following order: 53.5. participation in subsidiaries and associated company share capital initially reflects the value of the acquisition balance sheet item" investments in associates and subsidiaries ";

86.2. each report at the end of the year the item "investments in associates and subsidiaries" specified amount changes according to the value of the interests in the changes Group subsidiaries or associated companies in equity in the accounting year on the basis of Group subsidiary company or associated company General Meeting approved the annual report. Value increases or reductions of the subsidiary's profit or loss (according to the proportion of the capital) indicates the parent company's profit and loss statement;
86.3. the item "investments in associates and subsidiaries" stated amount at the end of the year also reduces the calculated amount of dividends applicable to the participation share;
86.4. If profit and loss statement under "income from shares in companies ' equity participation share specified values increase in the year exceeds the amount of dividends, calculated the difference includes reserve which may be divided into dividends."
16. The deletion of chapter IX.
17. To supplement the rules with the XII, XIII, XIV, XV, XVI, XVII, XVIII and XIX the following: "XII. The obligation to draw up consolidated accounts 122. Consolidated annual accounts and the consolidated annual report shall be prepared by the insurance company (parent company), which meets at least one of the following conditions: 122.1. it holds members or a majority of the voting rights of shareholders (more than 50%) in another company (subsidiary company);
122.2. it has the right to appoint or cancel another company (subsidiary company), Board Council or other administrative or supervisory body of the members of the majority (over 50%), and it is this company's member or shareholder;
122.3. it has the right to use this provision and 122.2 122.1. the rights referred to in the company (subsidiary company), based on the contract concluded with the company, or in accordance with the statutes of the company (regardless of whether the parent company has a capital holding in the company of part or not);
122.4. it is a shareholder in or member of another company (subsidiary) share capital, which has a majority of the voting rights in accordance with the agreement concluded with other shareholders or members of that company.
123. The insurance company (parent company) and all its subsidiaries that are registered in Latvia or abroad, form a group of insurers. Determining the insurer group, a subsidiary of a subsidiary undertaking shall be considered as insurance companies (parent company) subsidiaries.
124. The insurance company, the provisions of the voting rights referred to in paragraph 122 and the number of members of the Executive Body, do the following calculation: 124.1.  the parent company of the insurer's right to vote and the number of members of the Executive of the total vote and with it the number of members of the Executive Body, which is the other Group subsidiary companies or individuals acting on your behalf, and the Group of the parent company or other subsidiaries of this group;
124.2. Group subsidiary company of the shareholders ' or members ' voting rights will be reduced by the total number of voting rights that apply to such shares or parts: 124.2.1.  which belongs to the mazākumakcionār and the mazākumakcionār are used;
124.2.2. which is kept as a guarantee to the extent that the voting rights are exercised in the right of the person who provided the security, or in accordance with the terms of the loan;
124.2.3. where the holder is a subsidiary or a subsidiary of a subsidiary, or a person acting in his own name but the same subsidiary or a subsidiary of a subsidiary company.
XIII. Exemption from the obligation to draw up consolidated accounts 125.  Insurance company (parent company), which has to prepare the consolidated annual report and which is also another Republic of Latvia registered insurance company subsidiaries, may not prepare consolidated annual accounts if the parent company owns: 125.1.  all shares in insurance companies (subsidiaries), except the Board reserves for shares or 125.2.  90% or more shares of the company and other shareholders have agreed to the decision not to prepare consolidated accounts.
126. The insurance company (parent company), which in accordance with the provisions of paragraph 125 did not prepare consolidated annual accounts, annual accounts: 126.1.  the parent company that prepares the consolidated accounts (name, registration number and registered office);
126.2. reference that the company is exempted from the requirement to prepare consolidated accounts.
127. The insurance company that issued shares are quoted on the Republic of Latvia registered stock exchange, consolidated accounts be prepared independently of this provision, the conditions referred to in paragraph 125 of the existence.
128. The subsidiaries not involved in consolidation, if there is at least one of the following conditions: 128.1.  the subsidiary is not important — it does not interfere with the inclusion in the consolidation the consolidated annual accounts give a true and fair view of the Group's financial position and operating results. However, if the same group is a number of such subsidiary companies and they are significant as a whole, then it will be excluded from the consolidation are not allowed;
128.2. long-term restrictions substantially hinder the parent company the opportunity to exercise their rights in relation to the management or use of the assets;
128.3. subsidiaries of shares or interests in the property of the parent company is located temporarily and are kept for the next 12 months, they sold a away;
128.4. information about the subsidiary, you need a consolidated annual accounts are drawn up, can't get the time or without unduly large expenditure;
128.5. subsidiary operations are so different from insurance company operations that it interferes with the inclusion in the consolidation the consolidated annual accounts give a true and fair view of the Group's financial position and operating results.
129. If not the subsidiaries involved in the consolidation in accordance with the provisions of paragraph 128, then the consolidated annual accounts of this company did not explain the reason for inclusion, as well as the non-inclusion of the nature's impact on the Group's financial position and operating results.
XIV. Consolidated annual report content, submission and publication procedure 130. Consolidated accounts shall comprise:

130.1. consolidated balance sheet (annex 9);
130.2. the consolidated profit and loss statement (annex 10);
130.3. consolidated cash flow statement;
130.4. in this consolidated report;
130.5. review of changes in the consolidated balance sheets under "capital and reserves";
130.6. report on the methods used in the accounts and consolidated annual accounts.
131. the consolidated financial statements give a true and fair view of the insurer as a whole the Group's financial position and operating results.
132. the annexes to the consolidated annual report provides additional information if the provision of instructions are not sufficient to prepare them in accordance with the consolidated financial statements give a true and fair view of the insurer's group as a whole.
133. In accordance with the requirements of the rules prepared consolidated financial statements do not provide sufficiently clear and true picture of the insurer in the group as a whole, in exceptional cases the insurer may derogate from certain requirements of these provisions. The consolidated annual accounts explain each such resignation reason and its impact on the insurer Group's financial position and operating results.
134. the report on the changes in the consolidated balance sheets under "capital and reserves" and the consolidated cash flow statement is prepared in accordance with the Republic of Latvia accounting standards.
135. The consolidated report shall include information on the companies involved in the consolidation as a whole, the development of the group in the year under review and the current situation, as well as information about any important events of the insurer in the Group since the end of the reporting year.
136. the consolidated annual accounts shall be signed by the insurer's parent company management: 136.1.  shares of the company, Chairman of the Board, President and ceo of the Council;
136.2. in societies, cooperatives or corporations of the executive body.
137. each consolidated balance sheet, off-balance sheet, profit and loss statement and cash flow statement line item represents the insurer Group's review of the year and for the preceding financial year. If these indicators are not comparable, it explains the consolidated annual accounts.
138. The first reference year the reference year only. Consolidated balance sheet, off-balance sheet, profit and loss statement and cash flow statement items where no amount in respect of the financial year, only if the previous one has been in the post with the amount.
139. The consolidated annual report of the monetary unit is the lats. The consolidated annual report, all rates must be rounded to integer.
140. the consolidated annual accounts, accompanied by the auditor's opinion, the jury submitted to insurance supervision inspection under the supervision of insurance companies and the law of the second subparagraph of article 56(1).
141. A sworn auditor prepares a written opinion about the insurer's consolidated accounts in accordance with the provisions of paragraph 13.
142. No later than one month after the approval of the consolidated annual report to the general meeting of shareholders or members of the general meeting of the insurer in the Group's balance sheet, the profit and loss statement and a full sworn auditor's opinion in accordance with the provisions of paragraphs 18 and 19 shall be published in the newspaper "journal".
XV. preparation of the consolidated annual report of 143.  Consolidated accounts shall be drawn up for the period determined in the law "on accounting" in article 14.
144. If a subsidiary annual report preparation date differs for three and more months of preparation of the consolidated annual report, prepare a corrected subsidiary annual report. The corrected annual accounts drawn up by the State to a date which corresponds to the consolidated annual report.
145. If a subsidiary's annual report and the consolidated annual report date, the difference does not exceed three months, to make this subsidiary company of adjustment, in the light of any significant off-balance sheet, balance sheet, profit and loss account item changes that have occurred in the period between the subsidiary's annual report and the consolidated annual report.
146. If the review during the year, changes in the composition of the companies involved in the consolidation, the consolidated annual report shall include information to enable this report compared to the previous year, the consolidated accounts. If the review year of the companies involved in the consolidation of the composition changes are material, prepare the adjusted balance and the adjusted profit and loss account.
147. Consolidated accounts shall be drawn up, with the consolidation method combining the annual report of the parent company and the subsidiaries involved in the consolidation of the relevant items in the annual accounts for the given resources, liabilities, capital and reserves, the amount of revenue and expenditure. Consolidation companies for the balance sheet assets and liabilities are fully included in the consolidated balance sheet. The profit and loss account items include fully consolidated profit and loss statement.
148. The consolidated annual accounts figures based on calculations and work tables. Records of work tables does not affect an insurance company's or its subsidiaries ' individual annual accounts. Preparing and working tables, the law "on accounting" 6, 7 and 10 in source documents and accounting records. The above calculation and table storage time of 10 years.
149. when preparing the consolidated annual report, within the framework of the group used the same accounting methods and the same items in the valuation rules in accordance with this provision, V, VII and VIII.
150. If the Group subsidiary used different accounting methods and valuation rules other than the parent company, preparing consolidated annual accounts, the annual report of the subsidiary of the parent undertaking shall be corrected. However, if adjustment is practically impossible to calculate the consolidated annual accounts. The consolidated annual accounts provide information on the proportion of the subsidiaries, who use different accounting methods and other valuation rules.
151. for the consolidated annual report foreign subsidiaries, the company drafted in foreign currency conversion accounts in local currency. Making the adjustment, subject to the following provisions:

151.1. assets and liabilities are translated in dollars by the Latvian Bank foreign exchange rate on the last day of the reporting year;
151.2. revenues and expenses are translated in dollars by the Latvian Bank foreign exchange business day;
If the translation of 151.3. items created difference (positive or negative), it reflects the consolidated balance sheets under "revaluation difference";
151.4. If a foreign subsidiary of a parent company owned entirely by the recalculation difference reflects in the consolidated balance sheets under "Mazākumakcionār holding".
152. the preparation of the consolidated accounts, the methods of consolidation used are used consistently each year. Derogate from this principle may only in exceptional cases. Each such case, explain the reason for the consolidated annual accounts. The annex also explains how to change the consolidation method affects the consolidated annual account items.
153. In preparing consolidated accounts: 153.1.  the parent company's annual report consolidation subsidiaries involved in the combined company annual reports, using the full consolidation method.
participation in the company, 153.2. where, on the basis of an agreement, managed by one or more of the companies in the Group of insurers jointly with one or more companies that are not insurers of the companies in the group, using the proportion reflects consolidation method;
153.3. annual report of the parent company's participation in associate companies in which the Group's companies the insurer directly or indirectly owns 20 percent or more of the voting shares or participation rights, which give significant influence, but not control over decision making, reflect, using the equity method.
XVI. the full consolidation method To 154. consolidated financial statements should be prepared as one single company, adhere to the following procedures: the consolidation of 154.1.  adjusted Group subsidiary company annual accounts that use different accounting methods (subject to this provision in paragraph 150 requirements);
154.2. conversion to LCY based foreign Group subsidiaries annual reports (subject to this provision in paragraph 151 requirements);
154.3. switch off the parent company's investment value and its corresponding value of shares of subsidiaries at the balance sheet item "capital and reserves";
154.4. Turning off the consolidation between the undertakings involved in the transaction and the balance between the amount of the settlement;
turn off not yet acquired 154.5. profits or losses resulting from the consolidation of the companies involved in the transactions between the parent company is incorporated and subsidiaries the assets shown in the balance sheet value;
154.6. mazākumakcionār participation determines the portion of the full consolidation of the subsidiaries involved in the capital and reserves, as well as income.
155. This provision in the specified exclusion 154.3 is carried out on the basis of consolidation subsidiaries involved in the value of the shares or at least one of the following dates: 155.1.  the date when the subsidiary was first involved in the consolidation;
155.2. subsidiaries ' shares or purchase date;
155.3. date on which the undertaking became a subsidiary of the group, or if the shares are acquired at different dates. The consolidated annual accounts indicate the value date.
156. by mutual exclusion encountered differences confined to those balance sheet items whose value is compared with the original balance sheet value is changed.
157. If the rules referred to in paragraph 156 of the difference can not be attributed to a specific balance sheet item, then any remaining amount is reflected in the consolidated balance sheets assets under "positive consolidation difference", if it is built up of the balance sheet, the assets or the assets in the consolidated balance sheets under "negative consolidation difference", if it is built up of the balance sheet liabilities.
158. the consolidated balance sheets under "positive consolidation difference" reflect the amount written off systematically cost useful economic lives.
159. the consolidated balance sheets under "negative consolidation difference" reflect the amount can be transferred to the consolidated profit and loss account only to the extent it meets if the resulting revenue.
160. the procedure laid down in this chapter shall not apply to shares of the parent company or parts of the same parent undertaking or a subsidiary of the company involved in the consolidation. The consolidated balance sheet of the stock or shares of the following indicates the item "insurance company-owned shares".
161. a subsidiary part of the capital and reserves, which belongs to the mazākumakcionār, reflect the individual consolidated balance sheets liabilities under "Mazākumakcionār holding". A subsidiary of profit or losses relating to the suspension of mazākumakcionār shares or parts, reflects the consolidated profit and loss statement under "Mazākumakcionār profit/loss".
162. Where a parent company has acquired a subsidiary in the year, the subsidiary's profit or loss includes the consolidated profit and loss account only to the extent that the resulting from the acquisition of subsidiaries date to the date of the statement.
163. (eliminate) seized in the subsidiary's results of operations reflect the consolidated profit and loss account up to the date you terminate the parent company a decisive impact in this subsidiary (this provision within the meaning of paragraph 122).
XVII. The proportional consolidation method, 164.  If according to this provision, section 153.2. preparing consolidated financial statements, the company jointly managed the funds, liabilities, capital and reserves, revenues and expenses included in the consolidated annual accounts in proportion to the companies involved in the consolidation of equity participation in the company.
165. Jointly managed the company's inclusion in the consolidation by using the rules specified in paragraph 164 method is carried out in accordance with the provisions of titles IV and V of this chapter.
XVII. Equity method 166.  The companies involved in the consolidation of the associate participation reflects the consolidated annual report shall, subject to this provision, 150.149 and 151 to the requirements laid down in point.

167. In accordance with the provisions of subparagraph intended 154.5. profit or loss of the associate's balance off only to the extent that it is based on source documents or facts which are impossible to get source document.
168. The initial capital of the associate participation reflects the balance sheet item "shares or shares in associates" in one of the following values: 168.1. associate's purchase of the shares or value;
the amount that 168.2. According to the last balance sheet data meets the associate's capital and reserves share capital as a percentage.
169. The difference between this provision and paragraph 168.1 168.2. certain value reflects the consolidated balance sheet or the consolidated annual accounts. The consolidated annual accounts also indicate which of the provisions referred to in paragraph 168 of the valuation methods are used.
170. In the years after the initial value of the balance sheet item "shares or shares in associates" the specified value is adjusted based on the associate's capital and reserves amount to increases or reductions.
171. The balance sheet item "shares or shares in associates" the specified value of each reporting year also reduces on associate estimated the amount of dividends, for the part relating to this participation.
172. The associate's profit or loss for the part relating to the consolidation of the companies involved, indicate the consolidated profit and loss statement under "income from participating companies", if it is profit, and under "the value of Investments in associates", if it is a loss.
173. This provision is specified in paragraph 169 of the difference reflects the consolidated balance sheet, increasing or decreasing the value of items whose value is compared with the original balance sheet value will change. If this difference cannot be attributed to a specific balance sheet item, then it reflects the item "positive consolidation difference" or under "negative consolidation difference".
174. The rules referred to in paragraph 173. consolidation differences written off under this provision and paragraph 158.159.
175. If the insurer is an associate company, it provides the general meeting of shareholders approved the annual report, a copy of it in companies that have a significant impact on the insurer.
XIX. The consolidated annual accounts of 176.  In addition to the other information specified in these provisions of the consolidated annual accounts include the following: 176.1. consolidation methods used in the detection criteria;
176.2. insurer group company names and legal addresses, each subsidiary of the activity, as well as each of the share capital of subsidiaries that acquired other companies in the Group and by persons acting in their own names but on behalf of the company or the Group;
176.3. Description of the method applied to each subsidiary's annual report for inclusion in the table of contents consolidated annual report;
176.4. associate the name and legal address of the company share capital, number of shares, owned by the companies involved in the consolidation or by persons acting in their own names but on behalf of the company or the Group;
176.5. jointly managed company names and legal addresses, as well as the share capital of the companies belonging to the companies involved in the consolidation or by persons acting in their own names but on behalf of the company or the Group;
176.6. any consolidated balance sheet does not reflect the total amount of the obligations, if such information is important in the insurer's financial position of the Group;
176.7. positive or negative goodwill allocation by specific companies, as well as the amount of goodwill at the beginning of the year, its depreciation and net book value at the end of the accounting year;
176.8. parent company's shares or parts that have this same property of the parent company or its subsidiaries own or persons acting in their own names but on behalf of the company or of the group, indicating the number and the nominal value of the shares.
177. The consolidated annual accounts also reveals other information which have a significant influence on, or may have a significant effect on the financial position of the Group of the insurer or of performance evaluation. "
18. To supplement the provisions of the new annex 8 (annex 1).
19. To supplement the provisions of the new annex 9 (annex 2).
20. To supplement the provisions of the new annex 10 (annex 3).
 
Prime Minister a. slice traffic Minister a. Gorbunov will