Decree of 29 May 1999 adapting the national chart of accounts to the activities of stock exchange intermediaries

Decree of 13 Safar 1420 corresponding to 29 May 1999 Adapting the national chart of accounts to the activity of stock exchange intermediaries.

The Minister of Finance,

Having regard to Ordinance No. 75-35 of 29 April 1975 establishing the national chart of accounts; Having regard to Law No. 90-10 of 14 April 1990, as amended, relating to currency and credit; Having regard to Law No. 91-08 of 27 April 1991 relating to the profession of chartered accountant, statutory auditor, and certified accountant; Having regard to Legislative Decree No. 93-10 of 23 May 1993, as amended and supplemented, relating to the securities market; Having regard to Presidential Decree No. 98-428 of Aouel Ramadhan 1419 corresponding to 19 December 1998 appointing members of the Government; Having regard to Executive Decree No. 96-318 of 12 Joumada El Oula 1417 corresponding to 25 September 1996 establishing and organizing the National Council of Accounting; Having regard to the Decree of 23 June 1975 relating to the implementation modalities of the national chart of accounts; Having regard to the Decree of 16 Chaâbane 1417 corresponding to 28 December 1996 approving COSOB Regulation No. 96-03 of 3 July 1996 relating to the conditions for approval, obligations, and control of stock exchange intermediaries; Having regard to Regulation No. 92-08 of 17 November 1992 establishing the banking chart of accounts and accounting rules applicable to banks and financial institutions; Having regard to Regulation No. 97-01 of 22 Ramadhan 1417 corresponding to 8 January 1997 on the accounting of securities transactions; Having regard to the opinion of the National Council of Accounting convened in plenary session on 23 November 1998;

Decrees:

Article 1. — This decree aims to determine the modalities for adapting the national chart of accounts to the activity of stock exchange intermediation.

Art. 2. — The account plan for the stock exchange intermediation activity attached to this decree consists of: — a list of accounts; — explanatory terminology and rules for the operation of accounts; — synthesis documents.

Art. 3. — Stock exchange intermediaries must comply with the provisions of this chart of accounts for the maintenance of their accounting and the presentation of their synthesis documents as of the date of its publication.

Art. 4. — Stock exchange intermediaries are subject to the maintenance of a physical inventory accounting for securities, the modalities of which will be fixed by the Commission for the Organization and Supervision of Stock Exchange Operations (COSOB).

Art. 5. — This decree will be published in the Official Journal of the People's Democratic Republic of Algeria.

Done in Algiers, on 13 Safar 1420 corresponding to 29 May 1999.

Abdelkrim HARCHAOUI.

COSOB Regulation Decree of 29-05-1999

ANNEX SUMMARY

Annex I List of Accounts

Annex II Terminology and Rules for the Operation of Accounts

Annex III Synthesis Tables

Annex I List of Accounts

Class 1: Equity 10 - SOCIAL CAPITAL 102 - Contributions from public enterprises 103 - Contributions from private companies 104 - Contributions from individuals 11 - PERSONAL FUND 110 - Operating Fund 119

• Owner's Account 12 - SHARE PREMIUMS 13-RESERVES 130 - Legal reserves 131 - Regulated reserves 1310 - Capital gains to be reinvested 1311 - Profit taxed at reduced rate 132 - Statutory reserves 133 - Contractual reserves 134 - Voluntary reserves 15 - REVALUATION DIFFERENCES 150 - Tax-free difference 151 - Taxable difference 152 - Difference reported to result 153 - INTER-UNIT TRANSACTIONS 154 - RESULTS PENDING ALLOCATION 155 - PROVISIONS FOR LOSSES AND CHARGES 190 - Provisions for probable losses 195 - Provisions for charges to be spread over several periods

Class 2: Investments 20 - PRELIMINARY EXPENSES 200 - Expenses related to the social pact 201 - Borrowing costs 202 - Investment expenses 203 - Professional training expenses 204 - Operating expenses prior to commencement 205 - Study and research expenses 208 - Exceptional expenses 209 - Absorption of preliminary expenses 21 - INTANGIBLE ASSETS 210 - Goodwill 212 - Rights of industrial and commercial property 22-LAND 220 - Construction land 226 - Other land 24 - PRODUCTION EQUIPMENT 240 - Buildings 2401 - Administrative and commercial buildings 2409 - Other buildings 243 - Equipment and tools 244 - Equipment and transport 245 - Office and communication equipment 2450 - Office furniture 2451 - Office equipment 2455 - IT equipment 2456 - Communication equipment 247 - Fixtures and installations 25 - SOCIAL EQUIPMENT 250 - Social Buildings 2500 - Staff housing 2502 - Buildings for social welfare 251 - Equipment 252 - Furniture and household equipment 257 - Alterations

COSOB Regulation Decree of 29-05-1999

28-INVESTMENTS IN PROGRESS 253- AMORTIZATION OF INVESTMENTS

Class 3: Stocks 31 - MATERIALS AND SUPPLIES 37 - STOCKS OUTSIDE 38- PURCHASES 39 - PROVISIONS FOR DEPRECIATION OF STOCKS

Class 4: Receivables 40 - DEBTOR ACCOUNTS OF LIABILITIES 42 - SECURITIES PORTFOLIO AND INVESTMENT RECEIVABLES 420 - Trading securities 4201 - Shares 4202 - Bonds 4203 - Treasury Bills 4209 - Other trading securities 421 - Participating securities 4211 - Shares 4219 - Other participating securities 422 - Investment securities 4222 - Bonds 4223-Treasury Bills 4229 - Other investment securities 423 - Placement securities 4231 - Shares 4232 - Bonds 4233 - Treasury Bills 4239 - Other placement securities 424 - Loans 425 - Advances and deposits on investments 426 - Deposits paid 429 - Other investment receivables 4290 - Funds bills to be collected 43 - STOCK RECEIVABLES 430 - Advances to suppliers 435 - Deposits paid 438 - Discounts to be obtained 44 - RECEIVABLES FROM PARTNERS AND AFFILIATED COMPANIES 440 - Partners (contributions) 448 - Receivables from affiliated companies 45 - ADVANCES FOR ACCOUNT 457 - Recoverable taxes and prepayments 46 - OPERATING ADVANCES 462 - Advances on services 463 - Advances to staff 464 - Advances on taxes and duties 465 - Advances on financial expenses 466 - Advances on miscellaneous expenses 468 - Expenses accounted for in advance 469 - Expenses pending allocation 47 - STOCK EXCHANGE RECEIVABLES 472 - Negotiation and settlement accounts 4721 - Stock exchange intermediaries 4722 - Financial institutions 4723 - Clearing house 4724 - Collective investment schemes in securities 4729 - Other negotiation and settlement accounts 473 - Subscriptions 476 - Other debtors 477 - Products to be received 478 - Invoices to be issued 479 - Bills and values in collection 48 - LIQUIDITY 483 - Accounts with the Treasury 484 - Accounts in financial institutions 485 - Bank accounts 486 - Postal accounts 487 - Cash 488 - Agencies and credits 489 - Fund transfers 49 - PROVISIONS FOR DEPRECIATION OF RECEIVABLES

Class 5: Liabilities 50 - CREDITOR ACCOUNTS OF ASSETS 52 - INVESTMENT LIABILITIES 520 - Bond loans 521 - Bank loans 522 - Investment credits 523 - Other loans 524 - Suppliers - Retention money 525 - Deposits received 529 - Other investment liabilities 5290 - Funds bills to be paid

COSOB Regulation Decree of 29-05-1999

53 - STOCK LIABILITIES 530 - Suppliers 538 - Invoices to be received 54 - HOLDINGS FOR ACCOUNT 543 - Income taxes 545 - Social contributions withheld 546 - Wage garnishments 547 - Taxes due on services 548 - Coupons collected for account 55 - LIABILITIES TO PARTNERS AND AFFILIATED COMPANIES 551 - Contributions to be reimbursed 554 - Blocked partner accounts 555 - Current accounts of partners 556 - Coupons and dividends to be paid 558 - Liabilities to affiliated companies 56 - OPERATING LIABILITIES 562 - Service creditors 563 - Staff 564 - Operating taxes due 565 - Financial expense creditors 566 - Miscellaneous expense creditors 568 - Social organizations 57 - STOCK EXCHANGE LIABILITIES 572 - Negotiation and settlement accounts 5721 - Stock exchange intermediaries 5722 - Financial institutions 5723 - Clearing house 5724 - Collective investment schemes in securities 5729 - Other negotiation and settlement accounts 574 - Deposits on securities transactions 5741 - Deposit in exchange for buy orders 5742 - Deposit in exchange for client portfolio management 5743 - Deposit in exchange for subscriptions 5743 - Deposit in exchange for subscriptions 5744 - Security deposit 5749 - Other deposits on securities transactions 575 - Payments remaining to be made on unpaid securities 576 - Other creditors 577 - Discounts to be granted 578 - Products accounted for in advance 579 - Receipts pending allocation 58 - FINANCIAL LIABILITIES 583 - Bills payable 588 - Bank advances

Class 6: Expenses 60 - STOCK EXCHANGE EXPENSES 600 - Losses on trading securities 602 - Expenses on investment securities 6021 - Acquisition costs 6022 - Amortization of premium 603 - Expenses on placement securities 6031 - Acquisition costs 6032 - Amortization of premium 6036 - Capital loss on sale 608 - Commissions paid 6081 - Trading commissions 6082 - Clearing commissions 6089 - Other commissions paid 609 - Other stock exchange expenses 61 - MATERIALS AND SUPPLIES CONSUMED 611 - Materials and supplies consumed 62 - Services 620 - Transport 621 - Rent and lease charges 622 - Maintenance and repair 624 - Documentation 625 - Remuneration of third parties 6250 - Commissions 6251 - Fees 6253 - Royalties 6255 - Legal and litigation costs 626 - Advertising 627 - Travel and receptions 6270 - Travel: Travel expenses 6271 - Travel: Accommodation expenses 6275 - Receptions: Accommodation costs 6276 - Receptions: Other costs 628-PetT 63 - PERSONNEL EXPENSES 630 - Staff remuneration 6300 - Salaries and wages 6301 - Overtime 6302-Bonuses 6303 - Paid leave 632 - Allowances and direct benefits 6320 - Allowances 6322 - Direct benefits

COSOB Regulation Decree of 29-05-1999

634 - Contributions to social activities 635 - Social contributions 6350 - Social security contributions 6351 - Mutual fund contributions 6352 - Pension fund contributions 64 - TAXES AND DUTIES 640 - Flat-rate payment 641 - Taxes on professional activity 646 - Registration duties 6460 - Registration duties on deeds and contracts 6462 - Stamp duties 647 - Customs duties 648 - Other duties, taxes, and levies 6480 - Land tax 6489 - Miscellaneous duties, taxes, and levies 65 - FINANCIAL EXPENSES 650 - Interest on loans 651 - Interest on current accounts and credit deposits 653 - Bank interest 654 - Discounts granted 655 - Bank and collection fees 6550 - Fees on securities 6551 - Fees on bills 6555 - Miscellaneous commissions 656 - Costs of purchasing securities 657 - Commissions on credit openings, guarantees, and avals 66-MISCELLANEOUS EXPENSES 660 - Insurance 669 - Other miscellaneous expenses 6691 - Contributions, levies, and donations 6692 - Advisory and assembly costs 68 - ALLOCATIONS FOR DEPRECIATION AND PROVISIONS 682 - Allocations for depreciation 685 - Allocations for provisions 69 - NON-OPERATING EXPENSES 690 - Grants granted 692 - Residual value of investments sold or destroyed 693 - Value of other asset elements sold 694 - Uncollectible receivables 696 - Expenses of prior periods 697 - Reversals of prior period products 698 - Exceptional expenses 699 - Exceptional allocations

Class 7: Income 70 - STOCK EXCHANGE INCOME 700 - Gains on trading securities 702 - Income on investment securities 7021 - Interest 7022 - Amortization of premium 703 - Income on placement securities 7031 - Interest 7032 - Amortization of premium 7033 - Dividends 7036 - Capital gains on sale 708 - Commissions received 7083 - Issuance commissions 7084 - Subscription commissions 7085 - Brokerage commissions 7089 - Other commissions received 709 - Other stock exchange income 75 - TRANSFER OF STOCK EXCHANGE EXPENSES 77 - MISCELLANEOUS INCOME 770 - Financial income 779 - Other miscellaneous income 78 - TRANSFER OF NON-BOURSIER EXPENSES 79 - NON-OPERATING INCOME 790 - Grants received 792 - Proceeds from sale of investments 793 - Proceeds from sale of other asset elements 794 - Recoveries on cancelled receivables 796 - Reversals of prior period expenses 797 - Prior period income 798 - Exceptional income

Class 8: Results 80 - NET STOCK EXCHANGE INCOME 83 - OPERATING RESULT 84 - NON-OPERATING RESULT 88 - PERIOD RESULT 880 - Gross result of the period 889 - Income tax on profits 89 - INTER-UNIT TRANSACTIONS

Class 9: Off-Balance Sheet 92 - COMMITMENTS ON SECURITIES 921-Securities to be received 922-Securities to be delivered 99 - OTHER COMMITMENTS 991 - Commitments received 992 - Commitments given

COSOB Regulation Decree of 29-05-1999

ANNEX II TERMINOLOGY AND RULES FOR THE OPERATION OF ACCOUNTS

CLASS 1: EQUITY 1 — Class 1 — "Equity" includes the financing means brought or left at the disposal of the enterprise in a durable manner by the owner(s). 2 — Account 10 "Social Capital" represents the statutory value of contributions made by partners. 3 — Account 11 "Personal Fund" represents the value of assets allocated to the enterprise by the operator. a) Account 110 "Operating Fund" records the value of elements brought by the operator to their enterprise. At the opening of each period, it receives the balances from the previous period of accounts 119 "Owner's Account" and 88 "Period Result". b) Account 119 "Owner's Account" records deposits and withdrawals of any nature made by the operator. During the following period, account 119 is settled by the debit or credit of account 110. 4 — Account 12 "Share Premiums" represents the excess of the contribution amount over the nominal value of shares or partnership interests. 5 — Account 13 — "Reserves" represents profits left by partners at the disposal of the enterprise and not incorporated into social capital. a) Account 130 "Legal Reserve" records reserves whose constitution is mandatory under current legislation. b) Account 131 "Regulated Reserves" records reserves constituted under regulatory provisions. c) Account 132 "Statutory Reserves" records reserves constituted under statutory clauses. d) Account 133 "Contractual Reserves" records reserves constituted under contract clauses other than those provided by the enterprise's statutes. e) Account 134 "Voluntary Reserves" records reserves whose constitution is left to the discretion of the enterprise. 6 — Account 18 "Results Pending Allocation" represents results from prior periods for which no allocation has yet been decided. This account receives the balance of account 88 "Period Result" at the beginning of the period and is then moved in accordance with decisions on the allocation of profits or losses. 7 — Provisions represent funds constituted to face the realization of a probable event linked to the enterprise's activities. a) Provisions for probable losses correspond to charges involving an element of uncertainty regarding their amount or realization. b) Provisions for charges to be spread over several periods are intended to face charges that, given their nature and importance, cannot be borne by the single period in which they are incurred. 8 — Provisions for losses and charges are recorded: — by the debit of account 685 "Allocations for Provisions", when they concern operations; — by the debit of account 699 "Exceptional Allocations", when they do not concern current operations. Provision accounts for charges and losses are adjusted at the end of each period: — by the debit of the corresponding allocation account (685 or 699), when the provision amount must be increased; — by the credit of account 796 "Reversals of prior period charges", when the provision amount must be decreased or cancelled (provision becoming wholly or partly obsolete). 9 — Charges that were previously subject to provisions are recorded in the relevant accounts of Class 6 when they are realized. In counterpart, account 78 "Transfer of non-stock exchange operating expenses" is credited by the debit of the concerned provision account, either for the amount of the provision itself, if this amount is less than or equal to the actual charges, or for a sum equal to these charges if the provision is higher than this amount.

CLASS 2: INVESTMENTS 1 — Class 2 - "Investments" includes all durable goods and values acquired or created by the enterprise. 2 — Account 20 "Preliminary Expenses" represents expenses incurred at the time of the enterprise's creation, the acquisition of its permanent operating means, as well as expenses related to its development or improvement of its activity. a) Expenses related to the social pact are expenses for constitution, increase or reduction of social capital, as well as expenses for extension of company, transformation, merger, or assimilated operations. b) Investment expenses include, exclusively, mutation duties, fees or commissions, and deed expenses on investments. c) Borrowing costs are those incurred upon subscription of loans as well as interim interest. d) Operating expenses prior to commencement include charges incurred prior to the operation of the enterprise or its new activities. 3 — Accounts 200 to 208 are debited by the credit of account 78 "Transfer of non-stock exchange expenses" for the amount of charges that must be spread over several periods and which have already been recorded according to their respective nature in accounts 61 to 66. 4 — Under no circumstances are preliminary expenses posted directly to accounts 200 to 208. 5 — Preliminary expense absorption accounts (2090 to 2098) are credited with the amount of absorptions by the debit of account 699 "Exceptional Allocations". 6 — Amounts recorded in each of accounts 200 to 208 are offset by the debit of absorption accounts as soon as the considered expenses are fully absorbed. 7 — Preliminary expenses must be absorbed as soon as possible and in principle within a period of five (5) years. 8 — Account 21 "Intangible Assets" represents the acquisition cost of intangible elements of goodwill or the benefit obtained by the inventor, author, or beneficiary of the right to exploit industrial or commercial property. 9 — Constructed land is evaluated and recorded separately from constructions built on these land. In the absence of supporting documents indicating separately the value of land and that of constructions, the allocation of the global acquisition price is carried out by all means available to the enterprise. 10 — Account 24 "Production Equipment" includes all goods of any nature, movable or immovable, excluding land, acquired by the enterprise to be used as instruments of work. 11 — Buildings include: foundations and their supports, walls, floors, roofs, as well as fixtures forming part of them, excluding those that can be easily detached or those that, due to their nature and importance, justify a separate entry. 12 — Equipment consists of all instruments used for the provision of services that constitute the profession exercised. 13 — Tools include all instruments whose use, concurrently with equipment, specializes this equipment in a determined use. 14 — Transport equipment includes all vehicles and devices used for the transport of persons and goods; 15 — Office and communication equipment include all means of office automation or IT and related applications and communication. 16 — Fixtures and installations include all objects and works intended to establish a link between various investments or to put them into a state of use. 17 — Account 25 "Social Equipment" includes all goods of any nature, movable or immovable, excluding land, acquired by the enterprise and allocated to non-professional operations. 18 — Account 28 "Investments in Progress" represents the value of investments in progress at the close of the period. 19 — Depreciation represents the recognition of the depreciation of investments allowing the reconstruction of invested funds. a) They are calculated to reconstruct at the end of a determined time period the funds allocated to each category of investment. b) Depreciation calculated from the moment an investment is acquired or completed must be practiced each year, even in the absence of profit. 20 — Account 29 "Depreciation of Investments" is subdivided into sub-accounts corresponding to the concerned investment accounts. 21 — Depreciation accounts are credited with the amount of depreciation performed during each period by the debit of account 682 "Allocations for Depreciation". 22 — Depreciation appears in the asset side of the balance sheet as a deduction from the asset value of each nature of investment in the form provided by the balance sheet model presented in the annex. 23 — Investments that normally do not depreciate may be subject to exceptional depreciation. The corresponding depreciation accounts are credited with the amount of the capital loss recorded by the debit of account 699 "Exceptional Allocations".

CLASS 3: STOCKS 1 — Class 3 - "Stocks" includes all goods acquired or created by the enterprise and intended to be consumed for the needs of operations. 2 — Account 31 "Materials and Supplies" represents products acquired by the enterprise and intended to be consumed. 3 — Account 37 "Stocks Outside" represents products of any nature that are the property of the enterprise but are not in its possession. 4 — Account 37 "Stocks Outside" is debited by the credit of account 38 "Purchases". Account 37 is credited by the debit of the concerned stock account upon receipt or return of products to the enterprise. 5 — Account 38 "Purchases" represents the value of goods acquired by the enterprise and intended to be consumed