Financial and capital market Commission, the provisions of regulations no 232 Riga 2013 17 October (financial and capital market Commission Council meeting Protocol No 6, p. 40)
Credit unions annual report in the legislative provisions Issued under the credit unions Act, article 23 of the first and the second part i. General questions 1. "credit unions annual report provisions of regulations" (hereinafter-the rules) are binding on the Republic of Latvia licensed credit unions in preparing the annual report and accounts of the sort. 2. the annual report as a single package consisting of: 2.1. financial statements, which include: 2.1.1. balance sheet and off-balance-sheet items, 2.1.2. income statement, 2.1.3.; 2.2. credit unions Council, if any, and the Executive Board (hereinafter control) message; 2.3. credit unions notice management responsibility. 3. Credit unions for each of its years of operation shall prepare an annual report which shall comply with the requirements of these provisions, and it includes financial statements give a true and fair view of the financial position of credit unions and the results of its operations. 4. balance sheet, off-balance sheet and income statement items of the layout complies with this provision of the third and the fifth. Additional items are presented, if they do not meet the aforesaid paragraphs listed items. Items in the third paragraph of the rules marked with three 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 that case the information requested therein is presented in the annex. 5. the annexes shall include descriptive information on the balance sheet, off-balance sheet, profit and loss statement items of content, comment on the risk control and management, related to credit unions, reveals other information that is significantly affected by or can significantly affect credit unions in financial position and performance of the evaluation. 6. Each balance sheet, off-balance sheet, income statement item presented in the current year and the previous financial year. If the reporting year previous year found errors or a change in the accounting policy, the previous table of adjusted items. The first reference year the reference year only. Balance sheet, off-balance sheet, income statement items that do not have the pointer displays only if the previous annual report has been presented the table of items. 7. The annual report of the monetary unit is the monetary unit of the Republic of Latvia. The annual report indicates the financial statements show the degree of accuracy of the figures. 8. In accordance with 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. 9. Financial year coincides with the calendar year. The first reference period can be shorter than a calendar year, but can not be more than 18 months. 10. Credit unions the Audit Commission or the credit unions Act article 23, second subparagraph, in the case referred to in the sworn auditor or certified auditor company (hereinafter – the Auditor), drawing up an opinion on whether the credit unions annual report contains financial statements in all essential respects, give a true and fair view of the financial position and operating results. Credit unions financial reporting shall be carried out and the auditor's opinion shall be drawn up in accordance with the International Federation of Accountants issued international audit standards. 11. 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 in financial and capital market Commission (hereinafter the Commission). The authorization of a credit union shall submit an application 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.
II. Reports control 12 credit unions report on annual report indicates: 12.1. credit unions description of the financial situation of reference year;
12.2. details of the anticipated credit unions development and important development measures; 12.3. the news of important events, if any, after the end of the reporting year; 12.4. information about credit unions operating essential risks and the risk management policy; 12.5. the proposals for the distribution of profits, or loss of dividend cover; 12.6. Council and Chairman of the Board and the members of the Board of first name, last name, job title, as well as details of the people who, in the year left in these posts. 13. Credit Management report signed by Council and Chairman of the Board. 14. The notice of credit unions management liability: 14.1 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; 14.2. the management is responsible for the appropriate sort of accounting, credit unions funds, fraud and other fraudulent activities; 14.3. or financial statements prepared in accordance with the consistent accounting methods used and that any derogation from these methods are revealed and explained in the annex; 14.4. credit unions or management decisions and assumptions the preparation of the financial statements has been cautious and sensible. 15. the notice shall be signed by the credit unions Council and Chairman of the Board. 16. 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, in particular the statement of credit unions leadership responsibility.
III. Balance sheet and off-balance-sheet items layout 17. Actively 17.1. Treasury claims against credit institutions 17.2 17.2.1 17.2.2. requirements on demand. Other claims 17.3. Credits 17.4. Debt securities 17.4.1. The Latvian Government debt securities in the Republic of Latvia 17.4.2. credit institutions registered in the mortgage mortgages 17.5. Intangible assets. assets 17.7 17.6. Prepaid expenses and accrued income other assets 184.108.40.206. Total assets 18. Liabilities liabilities to credit institutions 18.1 18.2 18.2.1. Deposits deposits demand deposits 220.127.116.11.3. Deferred income and accrued expenses 18.4. Provisions for commitments and payments 18.5 18.6. other liabilities capital and reserves share capital 18.104.22.168.6.2. Reserve capital and other reserves 18.6.3. Previous years retained earnings/loss 18.6.4. Profit/loss 18.7. Total liabilities 19. Off-balance sheet items contingent liabilities 19.1 19.1.1 19.1.2. guarantee the guarantee and other contingent liabilities 19.2. Off-balance-sheet commitments against members and business partners. The context of active 19.2.1 sales with repurchase option 19.2.2. the other off-balance-sheet liabilities IV. Explanatory notes on the balance sheet and off-balance-sheet items assets 20 20.1 in. Cash on hand includes a legal means of payment, t.sk. both foreign currency banknotes and coins. 20.2. Claims against credit institutions this item displays 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 paragraph 20.4 shows balance sheet assets item 17.4.2. Credit Union requirements that can be met without prior request or request deadline is 24 hours or one working day, presented a balance sheet asset 17.2.1. item. Other claims presented in the balance sheet assets 17.2.2. item. 20.3. Credits this item reflects all claims arising from transactions with credit unions members, t.sk. financial leasing. 20.4. Debt securities this item show Latvian public debt securities registered in the Republic of Latvia and the bank released mortgage mortgages. 20.5. Intangible assets this item shows the intangible assets, i.e. the identifiable assets which do not have the material forms, which are 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 an integral part of, and other essentially similar assets acquired against payment. Here shall also advance payments for intangible assets. 20.6. Fixed assets this item shows the credit unions belonging to the public (t.sk. no purchase leased and financial leasing transactions resulting) fixed assets, i.e., tangible assets that, credit unions use the 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 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 displays the unfinished construction costs and advance payments for fixed assets referred to in this paragraph. 20.7. Prepaid expenses and accrued income this item displays the credit unions the expenses incurred up to the end of the financial year but relating to future periods. Here shown also in previous years and in the year accrued, but not yet received, income, such as, but not yet received the calculated commissions, interest income, rent URu.tml. 12.9. Other assets this item shows the assets whose content does not match the other balance sheet items (t.sk. precious metals, precious stones, of movable and immovable property, carried as outstanding credit and other collateral claims if the Credit Union intends to sell, as well as tangible assets that are not used in credit unions and plans to dispose of). Like the produce here claims against credit unions. 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. 21. Liabilities liabilities to credit institutions 21.1 this item displays all obligations arising from transactions with domestic institutions as well as foreign and international institutions. 21.2. Deposits this item show a commitment to credit unions members arising from membership, attracting deposits and other refundable funds. 21.3. Deferred income and accrued expenses this item report income relating to future periods, but received up to the end of the reporting year. Presented here also the costs relating to the financial year and for earlier years, but that the date for payment of the balance sheet date has not yet expired. 21.4. Accruals and payments under this item displays the estimated tax savings, pensions URu.tml. costs relating to the financial year and previous years. Here also presented special and general provisions for off-balance-sheet commitments.
21.5. Other liabilities this item displays all other liabilities, of which does not comply with the other balance sheet liabilities items, such as assigned, but no dividends paid, liabilities to credit unions. Here are also reportable loans received from the Latvian banking companies of the world, from the European Union registered credit unions Association or Foundation, of State and local funds, as well as from State and local capital company. 21.6. Capital and reserves this item show all features belonging to members who invested in the company's share capital and credit accrued (lost) its activity. 21.6.1. Share capital this item shows the nominal value of the shares paid in total. 21.6.2. Reserve capital and other reserves this item displays the funds created from the reporting year and prior year profits, entry fee, as well as other reserves created from the reporting year and prior year profit in accordance with the Statute of the credit unions. 21.6.3. Previous years retained earnings/loss under this item displays the previous reporting year 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. 21.6.4. Profit/loss under this item show a profit before its distribution under the members ' general meeting (the meeting authorised) decision or a loss. 22.22.1. Off-balance sheet items contingent liabilities (the contingen liabilit) this item represents all transactions where credit unions head on members ' obligations. 22.1.1. Guarantee and warranty this item displays the guarantees, guarantees and assets pledged as members of which enforcement obligations. 22.1.2. other contingent liabilities this item shows acceptance of the endorsement, but the acceptance of the URu.tml. contingent liabilities. 22.2. Off-balance sheet liabilities to members and business partners (commitment) this item reflects all the irrevocable obligation to the credit union members and business partners, which may present a risk. 22.2.1. Obligations of asset sales with repurchase option this item should show commitment from business, which basically meets the conditions of paragraph 14.8. 22.2.2. the other off-balance-sheet commitments this item is presented in the context of the supply of credit, contract for the purchase of the assets of the future Treaty on the deployment of the future URu.tml of deposits. commitment.
23. special conditions 23.1. Credit unions assets 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. 23.2. Credit unions may not be reflected in your balance sheet or assets pledged as collateral it seized assets, unless they are incurred by placing deposits in credit unions. 14.5. Credit unions 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. Such assets and liabilities not presented in the balance sheet, but listed in an annex, distributed over the respective assets and liabilities. 23.4. Assets acquired by members on behalf of members, credit unions are not presented in the balance sheet. 14.6. 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. 14.7. If credit unions involved in the asset sale transaction with repurchase as a salesperson, then: assets sold 23.6.1. continues to show credit unions on a balance sheet, and separately disclosed in the notes on the accounts; in 23.6.2. sales received the funds (the purchase price) are presented in the balance sheet as a liability to an asset buyer. 14.7. 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 presented as claims against the seller of the assets. 14.8. an agreement on the sale of assets with a repurchase option transactions, which include 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. 14.9. 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, presented a memorandum 19.2.1. item. 23.10. If credit unions involved in the asset sale transaction with repurchase option as a buyer, then put the assets shown in the balance sheet as assets of the type in question.
V. profit or loss statement items layout 24. Profit or loss statement 24.1. Interest income. interest expenditure 24.2 24.3. Commission income 24.4. Commission expense 22.2. Profit/loss from transactions in debt securities and foreign currency 24.6. Other ordinary income 15.3. Administrative expenses 15.4. Intangible assets and depreciation of fixed assets/depreciation 15.5. Other ordinary expenditure expenditure savings 24.10. unsecured debt and off-balance-sheet liabilities accrual reduction 24.11. income 24.12. Long-term investment revaluation gains/losses 24.13. Ordinary activities profit/loss 24.14. Extraordinary income extraordinary expenses 24.16 24.15. Profit/loss before tax of 24.17. the calculation of corporate income tax 24.18. Profit/loss VI. Explanatory notes on the income statement items 25. Interest income this item displays the year in interest income and similar income from credit unions activities, including all income from assets shown in the balance sheet item 17.2-17.4., regardless of the method of calculating income, 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 a percentage of revenue reductions include expenses arising from 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 report income resulting from the agreement on the sale of the asset 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 also includes interest like commissions and service charges, calculated on the basis of the requirements laid down in the contract amount and the term of the contract. 26. Interest expenditure under this item displays the year in interest expenses and similar expenses from credit operations, including all expenses on commitments presented in the balance sheet and 18.2 18.1. item, 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 of that credit unions pay, comes the obligation of payment. As interest expense reductions 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 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. This item also includes interest like commissions and service charges calculated on the basis of the obligations laid down in the contract amount and the term of the contract. 27. the 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 the issue of the 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. 28. Profit/loss from transactions with securities and foreign currency are presented under this item: 28.1. profit/loss from trading with currency as well as foreign currency revaluation; 28.2. profit/loss from trading in debt securities which are not held until the end of the period of repayment, and the value of debt securities revaluation in accordance with the provisions of paragraph 51. 29. Other ordinary income and expenses these items show other income (expenses) related to the credit unions, but not reportable operating under 25-28 requirements, as well as gains/losses resulting from moveable and immovable property of the seizures. Like other ordinary income interest received is presented. As other normal expense presented the fine paid by credit unions membership fee and it costs pielīdzināmo (t.sk. payments to the Commission). 30. Administrative expenses this item displays the staff remuneration, social security costs, taxes and fees (except corporate tax) and other administrative costs. 31. Intangible assets and depreciation of fixed assets/depreciation this item reflects balances and assets of 17.5. under the 2.7. assets amortisation and depreciation. 32. expenditure savings uncertain debts and off-balance-sheet liabilities this item displays the costs savings not secure debts 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), presented in the balance sheet assets of 17.2, 17.3, 17.7 and 11.1. item of expenditure, as well as special and General savings guarantees and other 19.1 and 19.2. item against a list of off-balance-sheet commitments. In addition, this item includes losses incurred as a result of a write-down of assets, if they have not previously been provisioned or created stocks proved to be less than the amount of the disposal. 33. A provision for reduction of income this item displays the previous years referred to in paragraph 32 could not secure debts and off-balance-sheet obligations create a reduction of stocks, as well as income from previous years, depreciated asset value recovery. 34. long-term investment revaluation gains/losses under this item presented to the repayment deadline held the investment debt securities in the value of the recoverable damages calculated under paragraph 54 and 55 if there is a likelihood that the Credit Union will not be able to recover all the investment principal and interest due under the terms of the contract. Here are presented the investment increase in value that compensates for the profit and loss statement in previous periods included in the value of the investment. 35. Ordinary activities profit/loss under this item displays the credit unions from ordinary activities profit/loss from financial service and calculated as the difference between income and expenditure, the calculation does not include extraordinary income and expenses. 36. extraordinary income and expenses these items 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 is not expected in the future. 37. enterprise income tax this item displays the corporate income tax relating to the financial year. 38. Profit/loss under this item show a profit before its distribution under the members ' general meeting (the meeting authorised) decision or a loss.
VII. Assessment provisions 39. the financial statements shall be drawn up in accordance with the following general principles: 24.3. assuming that the Credit Union will operate in the future (the going concern principle); 24.4. using the same accounting and valuation methods used in the preparation of the previous annual report (coherence or consistency of principle); 39.3. the evaluation carried out in all cases with due caution (the precautionary principle), subject to the following conditions: 39.3.1. include only up to the balance sheet date for profit, i.e. income show when they already get or mining safe, but expenses are presented when they are likely 39.3.2. take note of all damages, regardless of their provenance (i.e. those relating to the reporting year and prior years) even those who became known during the period between the balance sheet date and the date of preparation of the annual report, 39.3.3. takes into account any write-down and amortization/depreciation amounts, whether or not completed the year with a profit or loss; 24.5. in the report reflect the income and expenses relating to the financial year, regardless of receipt or payment date (accrual basis); 24.5. 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; 24.6. assessing the assets and liabilities and their components separately; 24.7. each report the beginning of the year the balance in accordance with the preceding financial year closing balance. 40. If using the principles referred to in paragraph 39, between some of them conflict, individual transaction or event and registration is carried out by favouring the precautionary principle and the principle of materiality. 41. The preparation of financial statements, credit unions management may derogate from the principle referred to in paragraph 39, only justified for reasons of substance and the impact on credit unions financial position and results of operations explains in the annex. 42. transactions and events credit unions in action reflects the financial statements, taking into account their economic content and nature, not merely the legal form. 43. the assets or liabilities shown 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 assets, except credit unions is legally justified such values of assets or liabilities. 44. the profit or loss in the statement of income and expenses may not be mutually set off. However, it may be mutual: 44.1. deposit the income (expenses) associated with a particular asset (liability), hedging with the expense (income) from this limited risk assets (liabilities); 44.2. Cross may be added into the income and expenses of the assets and liabilities of the Credit Union values, using legal rights based mutually reduced. 45. Assets and liabilities are initially recognised in the balance sheet at their 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. 46. After initial recognition in the balance sheet fixed assets and intangible assets evaluation and reflect records in accordance with the following provisions: 46.1. the 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; 46.2. the asset reconstruction, enhancement, and restoration costs plus the carrying amount of the asset (the amount of assets or liabilities are recognised in the balance sheet) If fixed asset reconstruction, improvement and renewal has led to the improved economic performance of the asset. 47. assets excluded 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 an asset, or removing it from the package, is defined as the difference between the estimated disposal income and asset tracking. Calculation of profit or loss in the profit or loss is recognised as income or expense. 48. The profit or loss resulting from the write-off of intangible assets or transfer, shall be determined as the difference between the disposal income and goodwill the carrying amount of the asset and is recognised as income or expense in the income statement. 49. Debt securities that are held until the end of the period of repayment, after initial recognition in the balance sheet presented in accordance with the following provisions: 49.1. of 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 gradually reduced the bonus, amortizēj and depreciated amounts are recognised in the income statement; 30.6. 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 the securities gradually increases, the amount of the discount amortizēj, and this increase is recognised in the income statement. 50. The annual report referred to in paragraph 49 of the annex to the securities purchased with premium or discount, bonus and discount displays the part that has not yet been depreciated at the end of the year. 51. Debt securities which are not held until the end of the period of repayment, after initial recognition is presented in the balance sheet in accordance with the following provisions: 51.1. securities that exists freely available in an active market in which securities are marketable, regularly reassessed at market price (selling price set for the regulated market) in the following order: 51.1.1. If market prices of the securities becomes less (greater) than the price, under which the securities are reflected in the balance sheet then the book value of securities reduces (increases) according to their market price and value reduction (increase) are recognised in the income statement under "gains/losses from transactions with securities and foreign currencies", if contribution 51.1.2. the type of securities exceeds the market usually sell 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 sale could adversely affect market as well as in other cases, if 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 can not be precise enough to estimate the investment securities revaluation at a discounted market price that exceeds their acquisition cost or market price at which the last assessment is not acceptable. 52. Debt securities which are not held until the end of the period of repayment and which is not a regulated market, valued at acquisition value reduced by accumulated impairment loss. 53. One type of securities purchase price is determined as the weighted average price. 54. If there exists objective evidence that a loan URu.tml. requirements and to the repayment deadline held the investment debt securities carrying amount is greater than its estimated recoverable value, credit unions fixes this assets impairment losses and are recognised in the income statement when you create a special reserve does not secure debts. Asset impairment loss shall be determined, if it is likely 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. 55. If the period referred to in paragraph 54 of the impairment loss decreases and the associated this reduction is possible objectively to link with the incident that took place after the special reserve could not secure debts created (for example, improvement in the creditworthiness of the debtor), the amount written off Active Flip, adjust special reserve unsafe debts account. Restore the asset carrying amount 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 is recognised in the income statement. 56. the movable and immovable property, carried as outstanding credit and other collateral claims if the Credit Union intends to sell, as well as other tangible assets that are not used in credit unions and plans to dispose of, valued at estimated sales price, which is reduced by the estimated sales cost (i.e., after a clean goal values). 57. Assets that are not included in the valuation rule 46-56, after initial recognition in the balance sheet at their acquisition value assessed, which reduced by accumulated depreciation of these assets. 58. The valuation of assets and off-balance-sheet obligations if they are created in a special or general provisions for unsecured debts, financial statements presented, excluding the value of these stocks. 59. The assets, liabilities and off-balance-sheet items in foreign currency in the Republic of Latvia monetary units in accordance with the accounting used in foreign exchange rate on the last day of the reporting year. With foreign currency rate changes related to active and passive value changes are recognised in the income statement. 60. In assessing the financial position of credit unions, take into account the possible loss that may occur due to unforeseen events, if it can be measured reliably. 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 are mainly related to the disposal of the off-balance sheet liabilities in the future. If you are not the intended results of the event it is not possible to evaluate and recognise in the balance sheet and the profit and loss statement, the existence of this event, in annex t.sk. provides information about the nature of the event and the factors that can adversely affect future credit behavior and the possible losses. 61. If, between the end of the 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 to help evaluate the amount relating to the balance sheet date, existing conditions, then such events take into account in the valuation of assets and liabilities.
Content of the annex VIII. 62. Annex shall include the following, as well as other points of these regulations on the content of the attachment specified qualitative and quantitative information. 63. An explanation of the accounting policies used Provide an explanation of any 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, of the principles for evaluation, depreciation/amortisation methods. Items expressed in foreign currency, the presentation of the Republic of Latvia for the conversion of the currency used in the course. Provides information on income and expense accruals and recognition policies, both specific and general provision of unsecured debts building principles, lost debt write-off. 64. the allocation of assets and liabilities by currencies presented items of assets and liabilities broken down by currencies, as well as the significant foreign currency net open position in relation to the equity and foreign exchange position total net equity ratio. 65. Pledged assets provides information about 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. 66. Transactions with related parties shall provide a description of the credit unions lending policy deals with people who are associated with this Credit Union. Discover the types of operation, the nature and extent of that credit unions 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. 67. Losses on unsecured debt and off-balance-sheet liabilities show changes in special and general provisions uncertain debts and off-balance-sheet liabilities during the financial year, i.e. it balances at the beginning of the year, additional savings, savings created, t.sk. write-downs of debt cancellation, lost balance at the end of the year, showing separately the transactions with related parties created special and general provisions. Explains what types of assets or off-balance-sheet commitments, special and general provisions are created. Displays the credit, which has stopped the interest accumulation, total and clear accounting of such credit value of the method used. Displays the reference year scrapped irrecoverable debt. 68. Information on investment securities 68.1. Presented debt securities investments the breakdown as follows: 68.1.1. traded on a regulated market and outside the regulated market traded securities 68.1.2. securities for which credit unions there until the end of the period of repayment and other purposes, explaining the method used; 68.2. Explain to the repayment deadline and other securities held for the purposes of the valuation methods, their book value adjustment, if any, has been made in the year. If the securities market value differs from the value in the balance sheet, presented in the annex to the market value of the securities. 69. Fixed assets and intangible assets are 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 lists the use of existing assets. 70. Other assets and liabilities provides information about the overall structure of assets and liabilities. 71. Off-balance sheet items off-balance-sheet commitments grouped according to their nature and character, presenting the individual obligations of third party liabilities, as well as other commitments, which are at risk, and provide information on the amounts of commitments and create stocks uncertain debts. Obligations arising from transactions on the sale of assets with a repurchase option, displays the time when the repurchase of assets. 72. the consideration of credit unions and the Council of the members of the Management Board presented the Council and members of the management board the total remuneration paid. 73. Between the end of the reporting year and the 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 events found in the annex to the annual report and provides information about the nature of such events and the impact on credit unions.
IX. concluding issues 74. rules shall enter into force on January 1, 2014, and is applicable for credit unions in preparing the annual report, for the period that begins on or after that date. 75. With the entry into force of these regulations shall lapse to the Council from the Commission of 30 November 2001 decision No 21/4 approved "credit unions annual report preparation of the rules".
Informative reference to European Union directives, the regulations include provisions deriving from Council of 8 December 1986 on the directive for banks and financial institutions the annual accounts and consolidated annual accounts, 86/635/EEC based on article 54 of the Treaty, paragraph 3 "g" and refers to the banks and other financial institutions the annual and consolidated accounts. Financial and capital market Commission Vice Chairman p. Bird