Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies

UNOFFICIAL CLEANED TEXT
REGULATION ON FINANCIAL AND ADDITIONAL REPORTS AND THE CHART OF ACCOUNTS FOR FACTORING COMPANIES (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

The amendments adopted by the Regulation on Amendments to the Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies (Official Gazette No. 142/22) are applied for the first time to annual financial statements prepared as of December 31, 2023, and to quarterly financial statements prepared as of March 31, 2023, in the part relating to financial and additional reports, while the part relating to the chart of accounts is applied from January 1, 2023.

Reports relating to reporting periods up to December 31, 2022, are submitted in the manner prescribed by this Regulation on the forms from the Annexes to the Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies ("Official Gazette" No. 41/16, 61/16 and 132/17).

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

Introductory Provisions
Article 1.
(1) This Regulation prescribes:
– the structure and content of the financial reports of a factoring company and their publication, method and deadlines for submission to the Agency, – the structure and content of the additional reports of a factoring company and the method and deadlines for their submission to the Agency, and – the chart of accounts of factoring companies. (2) The provisions of this Regulation, in accordance with the provision of Article 63 of the Factoring Act ("Official Gazette" No. 94/14 and 85/15; hereinafter: the Act), are applied mutatis mutandis to the branch of a factoring company from an EU Member State and to the branch of a factoring company from a third country.

Keeping of Business Books
Article 2.
(1) A factoring company is obliged to keep business books, prepare accounting documents, value assets and liabilities, and prepare financial reports in accordance with the Act, while observing accounting and financial standards and principles as well as general accounting assumptions. (2) A factoring company is obliged to record business events in its business books using accounts at least to the extent prescribed by the chart of accounts in Annex 3, which forms an integral part of this Regulation.

Structure and Content of Financial Reports
Article 3.
(1) Financial reports consist of:

1. Statement of Financial Position (FP),
2. Statement of Comprehensive Income (SD),
3. Statement of Cash Flows (NT),
4. Statement of Changes in Equity (PK),
5. Notes to the Financial Reports.
   (2) The content and structure of financial reports are prescribed by the forms in Annex 1, which form an integral part of this Regulation. (3) Notes to the financial reports from paragraph 1, item 5 of this Article are prepared in accordance with the provisions of International Financial Reporting Standards.

Structure and Content of Additional Reports
Article 4.
(1) Additional reports consist of:

1. Report on Portfolio Structure – Factoring (SP-F),
2. Report on Portfolio Structure – Factoring Including Bill Purchase (SP-FOM),

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)
3. Report on Portfolio Structure – Supplier (Reverse) Factoring (SP-DF),
4. Report on Portfolio Structure by Activities, Sectors and Size of Participants in Factoring and Related Business (SP– DSV),
5. Report on Portfolio Structure – Business in Direct or Indirect Connection with Factoring Business (SP-OP),
6. Report on Changes in Allowance for Impairment (IV),
7. Report on Portfolio Quality (KP),
8. Report on Large Exposures (VI),
9. Report on Sources of Funds (IS),
10. Report on Currency Structure of Assets and Liabilities (VS-IO),
11. Report on Maturity Structure of Assets and Liabilities (RS-IO)
12. Report on Structure of Other Financial Assets (OFI),
13. Report on Structure of Other Financial Liabilities (OFO).
(2) The content and structure of additional reports are prescribed by the forms in Annex 2, which form an integral part of this Regulation.

Preparation of Financial and Additional Reports
Article 5.
(1) A factoring company prepares annual and quarterly financial and additional reports.
(2) For the business year period as of December 31, the factoring company prepares annual financial reports from Article 3, paragraph 1 and annual additional reports from Article 4, paragraph 1 of this Regulation. (3) Annual financial reports must be audited by an independent authorized auditor. (4) For quarterly periods as of March 31, June 30, September 30 and December 31 of the current year, the factoring company prepares quarterly financial reports from Article 3, paragraph 1, items 1 and 2 and quarterly additional reports from Article 4, paragraph 1, items 1, 2, 3, 4, 5, 6, 7, 8, 12 and 13 of this Regulation.

Deadlines for Submission of Financial and Additional Reports
Article 6.
(1) A factoring company is obliged to submit the annual financial reports from Article 3, paragraph 1 and annual additional reports from Article 4, paragraph 1 of this Regulation for the current business year to the Agency no later than April 30 of the following year. (2) A factoring company is obliged to submit the quarterly financial reports from Article 3, paragraph 1, items 1 and 2 and quarterly additional reports from Article 4, paragraph 1, items 1, 2, 3, 4, 5, 6, 7, 8, 12 and 13 of this Regulation to the Agency:
– as of March 31 of the current year no later than April 30 of the current year, – as of June 30 of the current year no later than July 31 of the current year, – as of September 30 of the current year no later than October 31 of the current year,

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22) – as of December 31 of the current year no later than January 31 of the following year.

Method of Submission of Financial and Additional Reports
Article 7.
(1) Factoring companies are obliged to submit financial and additional reports within the deadlines from Article 6 of this Regulation in accordance with the Agency's technical instruction. (2) It is considered that a factoring company has submitted the reports from paragraph 1 of this Article at the moment when the report is accepted on the Agency's server for receiving reports. (3) In justified cases of inability to submit in the manner prescribed by paragraph 1 of this Article, the factoring company is obliged to submit reports in written form, directly or by mail for the purpose of timely reporting. The factoring company is obliged to submit reports in the manner prescribed by paragraph 1 of this Article as soon as the reasons for inability to submit cease, and no later than within 8 days from the expiration of the deadline for submitting reports. (4) Exceptionally, factoring companies are obliged to submit the Notes to Financial Reports from Article 3, paragraph 1, item 5 of this Regulation together with audited annual financial reports in the manner and within the deadlines prescribed by Article 68, paragraph 2 of the Act.

Publication of Financial Reports
Article 8.
(1) A factoring company is obliged to publish audited annual financial reports on its website within six months from the end of the year to which those reports relate. (2) A factoring company is obliged to have published on its website financial reports from paragraph 1 of this Article for at least the last 5 business years or shorter if the factoring company has been operating for less than 5 years.

Instruction for Application of the Regulation
Article 9.
The Agency will adopt an Instruction prescribing the method of application of the chart of accounts as well as the method of filling out financial and additional reports prescribed by this Regulation.

TRANSITIONAL AND FINAL PROVISIONS OF THE REGULATION ON FINANCIAL AND ADDITIONAL REPORTS AND THE CHART OF ACCOUNTS FOR FACTORING COMPANIES (Official Gazette No. 41/16, entered into force on 10.5.2016.)

Transitional and Final Provisions
Article 10.
(1) Factoring companies are obliged, when recording business events in their business books, to use the chart of accounts from Article 2, paragraph 2 of this Regulation from January 1, 2017. (2) Factoring companies are obliged to submit quarterly reports from Article 5 of this Regulation to the Agency for the first time, as of March 31, 2017, which are submitted by April 30, 2017, and annual reports from Article 5 as of December 31, 2017, which are submitted by April 30, 2018.

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22) (3) With the entry into force of this Regulation, the Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies ("Official Gazette" No. 16/15 and 135/15) ceases to be valid. (4) This Regulation enters into force on the eighth day from the date of publication in the "Official Gazette".

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

1. Statement of Financial Position (FP)
   Position Description Previous Year Current Year NON-CURRENT ASSETS Intangible Assets Tangible Assets Long-term Financial Investments Long-term Deposits Other Long-term Financial Assets Long-term Receivables Deferred Tax Assets CURRENT ASSETS Receivables - Factoring Receivables - Factoring including Bill Purchase Receivables - Supplier (Reverse) Factoring Receivables - Interest, Fees and Commissions on Factoring Business Receivables - Business in Direct or Indirect Connection with Factoring Business Other Current Receivables Short-term Financial Investments Short-term Deposits Derivative Financial Instruments Other Current Financial Assets Other Assets Cash in Bank and Cash on Hand PREPAID EXPENSES AND UNACCRUED REVENUE TOTAL ASSETS OFF-BALANCE SHEET ASSETS EQUITY AND RESERVES Share Capital Of which owned by non-residents Capital Reserves Revaluation Reserves Other Reserves Retained Earnings/Carried Forward Loss Profit/Loss of the Current Year PROVISIONS LONG-TERM LIABILITIES Liabilities for Loans and Advances from Foreign Banks and Financial Institutions Liabilities for Loans and Advances from Domestic Banks and Financial Institutions Liabilities for Advances from Other Persons Other Long-term Liabilities Deferred Tax Liabilities SHORT-TERM LIABILITIES Liabilities for Loans and Advances from Foreign Banks and Financial Institutions Liabilities for Loans and Advances from Domestic Banks and Financial Institutions Liabilities for Advances from Other Persons Liabilities for Factoring Business Liabilities for Derivative Financial Instruments Other Short-term Liabilities DEFERRED EXPENSES AND REVENUE OF FUTURE PERIODS TOTAL LIABILITIES OFF-BALANCE SHEET LIABILITIES EQUITY AND RESERVES Attributable to Owners of the Parent Attributable to Non-controlling Interests

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

2. Statement of Comprehensive Income (SD)
   Position Description Previous Year Current Year INTEREST INCOME Interest Income - Recourse Factoring Interest Income - Non-recourse Factoring Interest Income - Reverse Factoring Interest Income - Business in Direct or Indirect Connection with Factoring Business Interest Income - Deposits Given Other Interest Income INTEREST EXPENSE Interest Expense - Domestic Banks and Financial Institutions Interest Expense - Foreign Banks and Financial Institutions Other Interest Expense PROFIT/LOSS FROM INTEREST FEE AND COMMISSION INCOME FEE AND COMMISSION EXPENSE PROFIT/LOSS FROM FEES AND COMMISSIONS OTHER OPERATING INCOME Profit from Exchange Differences Other Income OTHER OPERATING EXPENSES General and Administrative Expenses Staff Costs Loss from Exchange Differences Impairment Costs Other Expenses PROFIT/LOSS FROM OTHER INCOME AND EXPENSES TOTAL INCOME TOTAL EXPENSES PROFIT/LOSS BEFORE TAX Income Tax PROFIT/LOSS AFTER TAX Attributable to Owners of the Parent Attributable to Non-controlling Interests OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX Change in Revaluation Reserves (Property, Plant, Equipment and Intangible Assets) Unrealized Gains/Losses on Financial Assets at Fair Value Through Other Comprehensive Income Gains/Losses on Cash Flow Hedge Instruments Actuarial Gains/Losses on Defined Benefit Pension Plans Gains/Losses Arising from Translating Financial Statements of Foreign Operations TAX ON OTHER COMPREHENSIVE INCOME OF THE PERIOD NET OTHER COMPREHENSIVE INCOME/LOSS OF THE PERIOD TOTAL COMPREHENSIVE INCOME Attributable to Owners of the Parent Attributable to Non-controlling Interests Reclassification Adjustments

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

3. Statement of Cash Flows (NT)
   Position Description Previous Year Current Year CASH FLOWS FROM OPERATING ACTIVITIES Profit/Loss Before Tax Adjusted for:
   Depreciation
   Impairment Costs and Similar Write-offs
   Provisions
   Interest Income
   Interest Expense
   Cash Flows from Operations Before Changes in Working Capital Increase/Decrease in Receivables from Factoring Business Increase/Decrease in Other Receivables Increase/Decrease in Prepaid Expenses and Unaccrued Revenue Increase/Decrease in Liabilities for Factoring Business Increase/Decrease in Other Liabilities Increase/Decrease in Deferred Expenses and Revenue of Future Periods Interest Received Income Tax Paid NET CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Increase/Decrease in Long-term Tangible and Intangible Assets Increase/Decrease in Financial Assets Increase/Decrease in Other Items NET CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Payments by Owners Expenditure for Distribution of Profits (Dividends) Interest Paid Increase/Decrease in Liabilities for Loans and Advances Increase/Decrease in Other Items NET CASH FLOWS FROM FINANCING ACTIVITIES NET CASH FLOW CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

4. Statement of Changes in Equity (PK)
   Position Description
   Attributable to Owners of the Parent
   Non-controlling Interest
   Total Equity
   Share Capital
   Capital Reserves
   Revaluation Reserves
   Other Reserves
   Retained Earnings/Carried Forward Loss
   Profit/Loss of Current Year
   Balance January 1 of Previous Year
   Changes in Accounting Policies
   Correction of Errors of Previous Period
   Balance January 1 of Previous Year (Restated)
   Profit/Loss for the Period
   Unrealized Gains/Losses from Financial Assets at Fair Value Through Other Comprehensive Income Other Non-owner Changes in Equity Total Directly Recognized Income and Expenses of Previous Year (Period from Previous Year) Increase/Decrease in Share Capital Other Owner Payments Distribution of Profits/Dividends Other Distributions to Owners Balance December 31 of Previous Year Changes in Accounting Policies Correction of Errors of Previous Period Balance December 31 of Previous Year (Restated) Profit/Loss for the Period Unrealized Gains/Losses from Financial Assets at Fair Value Through Other Comprehensive Income

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22) Other Non-owner Changes in Equity Total Directly Recognized Income and Expenses of Current Year (Current Period) Increase/Decrease in Share Capital Other Owner Payments Distribution of Profits/Dividends Other Distributions to Owners Balance December 31 of Current Year

ANNEX 2. Additional Reports of Factoring Companies

1. Report on Portfolio Structure – Factoring (SP-F)
2. Report on Portfolio Structure – Factoring Including Bill Purchase (SP-FOM)
   Position Description Volume of Transactions
   Matured Receivables
   Unmatured Receivables
   Allowance for Impairment
   Liabilities for Factoring
   Based on Existence of Recourse Right
   With Recourse
   Without Recourse
   Based on Resident Status of Subjects
   Domestic Factoring
   Import Factoring
   Export Factoring
   Based on Contractual Maturity
   Up to three months
   From three to six months
   From six to nine months
   From nine months to 1 year
   Over 1 year
   Position Description Volume of Transactions
   Matured Receivables
   Unmatured Receivables
   Allowance for Impairment
   Liabilities for Factoring
   Based on Existence of Recourse Right
   With Recourse
   Without Recourse
   Based on Resident Status of Subjects
   Domestic Factoring
   Import Factoring
   Export Factoring
   Based on Contractual Maturity
   Up to three months
   From three to six months
   From six to nine months
   From nine months to 1 year
   Over 1 year

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

3. Report on Portfolio Structure – Supplier (Reverse) Factoring (SP-DF)
   Position Description Volume of Transactions
   Matured Receivables
   Unmatured Receivables
   Allowance for Impairment
   Based on Resident Status of Subjects
   Domestic Factoring
   Foreign Factoring
   Based on Contractual Maturity
   Up to three months
   From three to six months
   From six to nine months
   From nine months to 1 year
   Over 1 year

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

4. Report on Portfolio Structure by Activities, Sectors and Size of Participants in Factoring and Related Business (SP-DSV)
   Volume of Transactions Receivables Volume of Transactions Receivables Volume of Transactions Receivables Volume of Transactions Receivables Volume of Transactions Receivables Volume of Transactions Receivables Volume of Transactions Receivables By Sector Non-financial Institutions (Companies) Financial Institutions State Units Non-profit Institutions Population (Households) Non-residents By Activity Agriculture, Forestry and Fishing Manufacturing, Mining and Quarrying and Other Industries Construction Wholesale and Retail Trade, Transport and Storage, Accommodation, Food Preparation and Serving Information and Communications Financial Activities and Insurance Activities Real Estate Business Professional, Scientific, Technical, Administrative and Support Service Activities Public Administration and Defense, Education, Health Care and Social Care Activities Other Service Activities Population (Households) By Size of Enterprise Small Enterprises Medium Enterprises Large Enterprises Supplier (Reverse) Factoring Business in Direct or Indirect Connection with Factoring Business Supplier Buyer Buyer Service Recipient Position Description Factoring Factoring Including Bill Purchase Supplier Buyer Supplier

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

5. Report on Portfolio Structure – Business in Direct or Indirect Connection with Factoring Business (SP-OP)
6. Report on Changes in Allowance for Impairment (IV)
   Position Description Volume of Transactions
   Matured Receivables
   Unmatured Receivables
   Allowance for Impairment
   Collection, Preparation, Analysis and Provision of Information on Creditworthiness of Legal Entities and Natural Persons Engaged in Independent Activities Management of Client Receivables Arising from Sold Goods and Provided Services and Consulting Related Thereto Export Financing Based on Discounted Purchase and Without Recourse of Long-term Unmatured Claims Secured by Financial Instruments (Forfeiting) Purchase of Matured Claims Issuance of Credit Cover in Performing Foreign Factoring Other Business Total Position Description Receivables - Factoring Receivables - Factoring Including Bill Purchase Receivables - Supplier (Reverse) Factoring Receivables - Interest, Fees and Commissions on Factoring Business Receivables - Business in Direct or Indirect Connection with Factoring Business Other Assets Total Opening Balance (Closing Balance of Previous Period) Increase in Allowance for Impairment Decrease/Reversal of Allowance for Impairment Write-offs Closing Balance Collected Written-off Receivables Impairment Costs for Losses from Impairment

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

7. Report on Portfolio Quality (KP)
8. Report on Large Exposures (VI)
   Receivables Allowance for Impairment Receivables Allowance for Impairment Receivables Allowance for Impairment Receivables Allowance for Impairment Receivables Allowance for Impairment Receivables Allowance for Impairment Receivables - Factoring Receivables - Factoring Including Bill Purchase Receivables - Supplier (Reverse) Factoring Receivables - Interest, Fees and Commissions on Factoring Business Receivables - Business in Direct or Indirect Connection with Factoring Business Total Position Description Delay 0-90 days Delay 91-120 days Delay 121-180 days Delay 181-365 days Delay Over 1 Year Total Recourse Without Recourse Recourse Without Recourse Recourse Without Recourse Recourse Without Recourse Exposure to Other Persons Allowance for Impairment Name of Group of Related Persons Name of Person OIB Exposure by Deposits Given Investments in Securities and Business Shares Other Exposures Exposure by Other Business Related to Factoring Business Exposure by Factoring Business - to Buyer Exposure by Supplier (Reverse) Factoring Business Exposure by Factoring Business - to Supplier Position Description Exposure to Individual Persons Exposure to Groups of Related Persons Exposure by Factoring Business Including Bill Purchase - to Buyer Exposure by Factoring Business Including Bill Purchase - to Supplier

Regulation on Financial and Additional Reports and the Chart of Accounts for Factoring Companies - Unofficial Cleaned Text (Official Gazette No. 41/16, 61/16, 132/17 and 142/22)

9. Report on Sources of Funds (IS)
10. Report on Currency Structure of Assets and Liabilities (VS-IO)
    Position Description Euro
    EUR
    Foreign Currency and Currency Clause
    CHF
    (Amount in EUR)
    Foreign Currency and Currency Clause – Other Currencies (Amount in EUR) TOTAL (Amount in EUR) Receivables – Factoring Receivables – Factoring Including Bill Purchase Receivables – Supplier (Reverse) Factoring Receivables – Business in Direct or Indirect Connection with Factoring Business Other Financial Assets Other Assets Maturity up to 6 months Maturity from 6 to 12 months Maturity Over 1 Year Total Closing Balance Collateral Closing Balance of Received Loans and Advances in Current Year Opening Balance of Received Loans and Advances in Current Year New Borrowings in Current Year Repayments of Received Loans and Advances in Current Year Exchange Differences Amount of Financing Name of Creditor OIB Country of Creditor Related Person F