Order of May 14, 2002 Establishing the Accounting Plan for Collective Investment Schemes in Securities (OPCVM)

Order of Aouel Rabie El Aouel 1423
Corresponding to May 14, 2002
Establishing the Accounting Plan for Collective Investment Schemes in Securities (OPCVM).

The Minister delegated to the Minister of Finance, in charge of the Treasury and financial reform,

Having regard to Ordinance No. 75-35 of April 29, 1975 establishing the national accounting plan, particularly its Article 2;

Having regard to Ordinance No. 75-59 of September 26, 1975, modified and supplemented, establishing the Commercial Code;

Having regard to Law No. 90-10 of April 14, 1990, modified and supplemented, relating to currency and credit;

Having regard to Law No. 91-08 of April 27, 1991 relating to the profession of chartered accountant, statutory auditor, and certified accountant;

Having regard to Ordinance No. 96-08 of January 10, 1996 relating to collective investment schemes in securities (OPCVM), (SICAV) and (FCP);

Having regard to Legislative Decree No. 93-10 of May 23, 1993, modified and supplemented, relating to the securities exchange;

Having regard to Presidential Decree No. 01-139 of 8 Rabie El Aouel 1422 corresponding to May 31, 2001, establishing the appointment of members of the Government;

Having regard to Executive Decree No. 96-318 of 12 Joumada Ethania 1417 corresponding to September 25, 1996, establishing the creation and organization of the National Council of Accounting;

Having regard to the Order of June 23, 1975 relating to the implementation modalities of the national accounting plan;

Having regard to Opinion No. 01-16 of the National Council of Accounting, convened in plenary session on May 13, 2001;

Orders:

Article 1. — In application of the provisions of Article 2 of Ordinance No. 75-35 of April 29, 1975, cited above, this order aims to adapt the national accounting plan to the activity of collective investment schemes in securities (OPCVM).

Art. 2. — The annexed accounting plan comprises:
— the recording and valuation rules;
— the chart of accounts;
— the operating rules for specific accounts and explanatory terminology; — the synthesis documents.

Art. 3. — Collective investment schemes in securities (OPCVM) must comply with the provisions of this accounting plan for the maintenance of their accounting, the preparation and presentation of financial statements and synthesis documents as of the date of its publication.

Art. 4. — This order will be published in the Official Journal of the Algerian Democratic and Popular Republic.

Done in Algiers, on Aouel Rabie El Aouel 1423
Corresponding to May 14, 2002.

Abdelouahab KERAMANE.

COSOB Regulation Order of 14-05-2002

ANNEX
ACCOUNTING PLAN FOR COLLECTIVE INVESTMENT SCHEMES IN SECURITIES (OPCVM)

TABLE OF CONTENTS
I. - Recording and valuation rules
II. - Chart of accounts
III. - Operating rules for specific accounts and explanatory terminology
IV. - Synthesis documents

I. RECORDING AND VALUATION RULES

Capital of OPCVMs
In addition to the contributions of unit or share holders, the capital of an OPCVM is constituted by the total of charges and products that cannot be recorded as distributable amounts due to the specific definitions of distributable amounts and net profit given by the texts governing OPCVMs.

Thus, the capital of an OPCVM includes, in addition to the capital at the beginning of the fiscal year increased or decreased by the issuance and redemption of shares or units:
— commissions related to issuances and redemptions; — transaction costs on securities; — unrealized and realized capital gains or losses on portfolio operations; — realized capital gains or losses and unrealized capital losses on other asset items; — exchange differences; — payments received as guarantee for capital and/or performance.

Revenue Regularization Accounts
Revenue regularization accounts are opened in the books of OPCVMs to allow for an equitable distribution of the distributable result among all securities in circulation.

Due to the mechanism of revenue regularization accounts, new holders or shareholders contribute their revenue, and departing holders receive theirs. The unit revenue accrued by other units or shares is therefore not influenced, so that each unit has the right to the same unit revenue, regardless of the subscription date.

When a subscriber purchases a security, they purchase the capital increased by the revenue accrued at the date of the transaction.

The revenue is:
— either the revenue of the closed fiscal year; — either the revenue of the current fiscal year.

The unit coupon therefore remains constant despite the variation in the number of shares or units.

Accounting of Unrealized Capital Gains and Deviation from the Prudence Principle In order to preserve equality among holders, unrealized capital gains or losses must be accounted for and influence the net asset value of OPCVMs.

Thus, holders who request the redemption of their securities are not disadvantaged, and conversely, subscribers who enter the OPCVM are not advantaged.

Accounting of Securities Portfolio
Securities are to be accounted for in stock, the latter being maintained according to the perpetual inventory method and valued at current value.

However, the reference to historical cost, necessary for the monitoring of the organization's accounting and management, is maintained in the accounts. Securities are therefore recorded at their acquisition cost, and the difference between entry value and current value is recorded in a separate account in class 3 titled "Estimation Differences."

Securities are valued excluding costs upon entry into the OPCVM's patrimony. Costs incurred during purchase are charged to capital.

The exit of securities is recorded in accounting, on the transaction date, at the weighted average unit cost.

Valuation Methods for Securities
Securities are valued at their market value, as follows:
— listed securities are therefore valued at their stock market value; securities traded on the exchange are valued each working day based on the closing price of the exchange session when they are listed on the official list; — unlisted securities are valued by default using financial methods in strict respect of the principle of method consistency; — negotiable debt securities are valued at their market value or, by default, by applying an actuarial method, the rate retained being that of the issuance of equivalent securities; — OPCVM securities are valued at their most recent net asset value.

Accounting of Interest
Income from fixed-income investments is attached to the result as they are acquired (accrued coupon method).

COSOB Regulation Order of 14-05-2002

II. CHART OF ACCOUNTS

CLASS 1 EQUITY
NUMBER TITLE
10 CAPITAL
101 Share capital at the beginning of the fiscal year 102 Issuances and redemptions 1020 Issuances 1021 Redemptions 103 Commissions 1030 Subscription commissions 1031 Redemption commissions 1039 Retrocessions 10390 Retrocessions on subscription commissions 10391 Retrocessions on redemption commissions 104 Transaction costs 1040 Purchase costs 1041 Sale costs 105 Variation of estimation differences (VED) 1050 VED on shares and assimilated values 1051 VED on bonds and assimilated values 1052 VED on negotiable debt securities 1053 VED on OPCVM securities 1054 VED on other values 1055 VED on fixed assets 106 Realized capital gains and losses 1060 Capital gains (C+G) 10600 C+G on shares and assimilated values 10601 C+G on bonds and assimilated values 10602 C+G on negotiable debt securities 10603 C+G on OPCVM securities 10604 C+G on other values 10605 C+G on fixed assets 1061 Capital losses (C-L) 10610 C-L on shares and assimilated values 10611 C-L on bonds and assimilated values 10612 C-L on negotiable debt securities 10613 C-L on OPCVM securities 10615 C-L on fixed assets 10619 C-L on other values 107 Exchange differences 108 Payments received as performance guarantee 12 Carry forward 120 Carry forward on coupon rounding 121 Result of the closed fiscal year pending allocation Result of the fiscal year Regularizations Regularization of carry forward on coupon rounding Regularization of revenues of the closed fiscal year Regularization of revenues of the current fiscal year

CLASS 2 INVESTMENTS
21 Intangible assets
210 Goodwill
212 Rights of industrial and commercial property 2120 Leasehold rights 2121 Concessions and similar rights 2122 Software 22 Land 24 Production equipment 240 Buildings 244 Transport equipment 245 Office and communication equipment 2450 Office furniture 2451 Office equipment 2455 IT equipment 2456 Communication equipment 247 Fittings and installations 25 Social equipment 28 Investments in progress 29 Amortization of investments 294 Amortization of production equipment 2940 Amortization of buildings 2944 Amortization of transport equipment 2945 Amortization of office and communication equipment 2947 Amortization of fittings and installations 295 Amortization of social equipment

CLASS 3 PORTFOLIO — SECURITIES
Shares and assimilated values
Shares
Assimilated values
Estimation differences of shares and assimilated values Bonds and assimilated values Bonds Assimilated values Issuance premium to be spread Accrued interest on bonds and assimilated values Estimation differences of bonds and assimilated values 13 14 140 141 142 30 300 301 309 31 310 311 317 318 319

COSOB Regulation Order of 14-05-2002

32 Negotiable debt securities 476 Other matured securities 320 Treasury bills 48 Cash 321 Commercial paper 484 Accounts with financial institutions 322 323 Certificates of deposit Bonds of companies and financial institutions 485 486 Bank accounts Postal accounts 324 Medium-term negotiable bonds 487 Cash 325 Other negotiable debt securities 489 Fund transfers 327 Pre-deducted interest 328 Accrued interest CLASS 5 LIABILITIES 329 Estimation differences of negotiable debt securities 50 Creditors of assets 52 Investment liabilities 521 Bank loans 522 Investment creditors 53 Crediting operators 530 Subscriptions payable 531 Liabilities on securities purchases 538 Account for periodic distribution of costs 54 Holdings for account 543 IRG (Income Tax) 5439 Other withholding taxes 545 Social contributions withheld 546 Salary attachments 549 Other holdings for account

CLASS 4 RECEIVABLES
55 Shareholders and unit holders
40 Debtors of liabilities 556 Coupons and dividends payable 42 Investment receivables 56 Operating liabilities 426 Deposits and guarantees paid 562 Service creditors 428 Financial placements 5620 Manager 4282 Time deposits 5621 Custodian 4288 Accrued interest 5622 Intermediaries in operations out of pocket 429 Other investment receivables 5629 Other service creditors 43 Stock receivables 563 Personnel 430 Subscriptions at reduced price 5630 Remuneration due 44 Shareholders and unit holders 5631 Paid leave 45 Advances for account 5632 Share of profits due to personnel 454 Tax credits to be recovered 5633 Social welfare funds 456 Fiscal credit to be recovered 5639 Other liabilities due to personnel 46 462 463 Operating advances Advances on services Advances to personnel 5640 5649 565 Registration duties Other operating taxes Creditors of financial costs 464 465 Advances on taxes and duties Advances on financial costs 5650 566 Accrued interest on loans Creditors of miscellaneous costs 466 Advances on miscellaneous costs 5660 Insurance 468 Costs accounted for in advance 5661 Liabilities on purchases of supplies 4680 Stock of general operating supplies at the end of the fiscal year 5668 Due attendance allowances 4689 Other expenses accounted for in advance 5669 Other creditors of miscellaneous costs 469 Expenses pending allocation 568 Social organizations 47 Debtors operators 5680 Social contributions 471 Receivables on securities sales 472 Dividends to be received 57 Commercial advances 473 Interest due to be received 579 Receipts pending allocation 474 Amortized bonds 58 Financial liabilities 475 Matured negotiable debt securities 588 Bank advances

COSOB Regulation Order of 14-05-2002

CLASS 6 EXPENSES
669 Other miscellaneous costs
6691 Professional contributions
60 External management costs of placements 6692 Advisory and meeting costs 601 Manager remuneration 602 Custodian remuneration 67 Provisions for budgeted costs 61 Financial charges 611 Charges on loans 68 Provisions for amortization 612 Bank charges 682 Provisions for amortization 619 Other financial charges 62 Services 69 Non-operating expenses 620 Transport 694 Unrecoverable receivables 621 Rent and lease charges 696 Expenses of previous fiscal years 622 623 Maintenance and repairs Subcontracting 697 Reversals on revenues of previous fiscal years 624 Documentation 698 Exceptional expenses 625 Third-party remuneration

CLASS 7 REVENUE
6250 Intermediary remuneration
6251 Fees
6253 External personnel 70 Portfolio revenue
6255 COSOB royalty 700 Revenue from shares and assimilated values 626 Advertising, publications, public relations 701 Revenue from bonds and assimilated values 6260 Advertising 6261 Publications 702 Revenue from negotiable debt securities 6262 Public relations 703 Revenue from OPCVM securities 627 Travel and receptions 704 Revenue from other values 6270 Travel: travel expenses 6271 Travel: accommodation expenses 71 Revenue from cash 6275 Receptions: accommodation expenses 710 Remuneration of deposits 6276 Receptions: other expenses 628 Post and telecommunications 72 Other products 63 Personnel costs 78 Transfer of operating expenses 630 631 Personnel remuneration Partners' remuneration 79 Non-operating products 632 Direct indemnities and benefits 790 Subsidies received 633 Employee profit-sharing 794 Recoveries on cancelled receivables 634 635 Contribution to social activities Social contributions 796 Reversals on expenses of previous fiscal years 64 Taxes and duties 797 Products of previous fiscal years 640 Flat-rate payment 646 Registration duties 798 Exceptional products

CLASS 8 RESULTS
648 Other rights, taxes and duties
6480 Land tax 80 Net revenue from securities portfolio 6489 Other rights, taxes and duties 6489 Other rights, taxes and duties 81 Financial result 66 Miscellaneous management costs 660 Insurance premiums 83 Operating result 661 General operating supplies 84 Non-operating result 6610 Office supplies 6619 Other general operating supplies 88 Net result of the fiscal year 662 Bank commissions 880 Gross result of the fiscal year 668 Attendance allowances 888 Workers' participation in results

COSOB Regulation Order of 14-05-2002

III. OPERATING RULES FOR SPECIFIC ACCOUNTS AND EXPLANATORY TERMINOLOGY

1. Operating rules for specific accounts
   Class 1: Equity
   10 — Share capital
   101 - Share capital at the beginning of the fiscal year This account is debited or credited, at the end of the fiscal year, with the balance of accounts 102, 103, 104, 105, 106, 107 and 108 and, if applicable, the deficit balance of account 13 "Result of the fiscal year".

102 - Issuances and redemptions
This account is credited (subscriptions) or debited (redemptions) with the amount of the net asset value of the units subscribed or redeemed, less the amounts allocated to the various regularization accounts.

This allocation of the net asset value into capital share and revenue (accrued during the previous fiscal year and generated during the current fiscal year) of the subscribed or redeemed units allows for the respect of holder equality in the perception of the dividend and more precisely regarding the distributable result of the current fiscal year and the undistributed revenue of the last fiscal year.

103 - Commissions
This account is credited with subscription and/or redemption commissions provided for by the statutes or the OPCVM regulation. Subscription and redemption commissions are not defined as distributable amounts by COSOB Regulation No. 97-04 of November 25, 1997. They are therefore capital flows to be recorded in class 1.

Account 1039 "Retrocessions" is debited with the amount of subscription and/or redemption commissions due to the manager, custodian, or a third party.

104 - Transaction costs
This account records the purchase and sale costs of portfolio securities.

105 - Variation of Estimation Differences (VED) In accordance with the specific valuation rules for OPCVMs, assets must be valued, at each net asset value calculation, at their market value. Unrealized capital gains and losses are recorded in account 105 against account 3x9.

Account 105 only records the portion of estimation differences noted during the current fiscal year.

Account 1055 "VED on fixed assets" only records depreciation.

106 - Realized capital gains and losses
This account accounts for realized capital gains or losses on the disposal or repayment of asset items: portfolio securities, fixed assets, etc.

107 - Exchange differences
This account is debited or credited with losses or gains noted during the disposal of currencies resulting from the sale of securities abroad.

Furthermore, securities listed in currencies and currencies held by the OPCVM being valued at the exchange rate on the date of net asset value calculation, this account also records any exchange rate differences.

108 - Payments received as performance guarantee Amounts received under a capital or performance guarantee by the management company do not represent the nature of revenue, but that of a capital supplement insofar as the amounts thus received enhance the share or unit value. The payments therefore constitute capital flows to be carried in class 1.

12 - Carry forward
Current regulations do not prohibit the carry forward of a fraction or the total of distributable amounts to the following fiscal year(s) after its realization.

13 - Result of the fiscal year
The recording of the fiscal year result in class 1 allows for the direct reading of the amount representative of the net asset value on the liabilities side of the balance sheet, which allows for the direct calculation of the net asset value by dividing this amount by the number of shares or units in circulation.

At the beginning of the following fiscal year, it is settled by account 121 "Result of the closed fiscal year pending distribution".

14 - Regularizations
Regularization accounts are a particularity of OPCVMs allowing for the respect of the principle of equality among shareholders despite the permanent evolution of subscriptions-redemptions and the evolution of the net asset value and distributable revenue.

By virtue of this principle, any shareholder or unit holder must receive the same dividend regardless of the subscription date.

When a subscriber purchases a security, they purchase the capital increased by the revenue accrued at the date of the transaction.

The revenue is:
— either the revenue of the closed fiscal year; — either the revenue of the current fiscal year.

The unit coupon thus remains constant despite the variation in the number of shares or units.

Regularization accounts function according to the following scheme.

Account 140 is credited or debited during subscription-redemption operations for the share in the net asset value coming from the carry forward on coupon rounding.

Account 141 is credited for the share in the net asset value of revenues pending distribution of the closed fiscal year.

Account 142 records the fraction of the issuance or redemption price corresponding to the amount, per share or unit, of revenues accrued by the OPCVM since the beginning of the accounting fiscal year.

Account 14 is intended to be regularly settled.

Moved during subscription-redemption operations, it is settled on the day of distribution (or incorporation of the result into the fund's assets).

COSOB Regulation Order of 14-05-2002

Class 2: Investments
The total of fixed assets held by OPCVMs is recorded in accounting at historical cost.

Under no circumstances are unrealized capital gains recorded.

The classic valuation rules for fixed assets apply.

Provisions for amortization are recorded in account 682 "Provisions for amortization".

Class 3: Securities Portfolio
The entries (purchases or subscriptions) and exits (sales or repayments) of securities are accounted for based on the acquisition price (historical cost method), excluding costs. These are carried to account 104.

Portfolio exits are noted at the weighted average cost (WAC).

Any exit generates a capital gain or loss on disposal or repayment which is recorded in account 106.

30 - Shares and assimilated values
Account 30 records movements on shares and assimilated values including estimation differences.

It also records the entry into the portfolio of attribution and subscription rights.

Shares and assimilated values are valued at their market value. Unrealized capital gains or losses are recorded in account 309 "Estimation differences of shares and assimilated values" by the counterpart of account 105 "Variation of Estimation Differences (VED)".

Securities are kept at their historical value in the portfolio accounts.

31 - Bonds and assimilated values
Account 31 notes at its debit the acquisitions of bonds, either by purchase on the exchange or by subscription to the issuance.

Portfolio entries are accounted for at their acquisition price, excluding costs. These are carried to the debit of account 104 "Transaction costs".

The purchase price of the bond includes the bond quotation ex-coupon plus the accrued coupon. The accrued coupon at purchase is recorded as an asset in account 318 "Accrued interest on bonds and assimilated values".

Account 317 is a structurally creditor account used in the case of subscription or purchase of bonds issued below par. It serves to apprehend the issuance premium in distributable result as the life of the security progresses.

Account 318, opened for the accounting of accrued interest on bonds quoted ex-coupon, functions as follows:
— it is debited with accrued interest at the

COSOB Regulation Order of 14-05-2002