Instruction No. 15/2019 of September 6 – Chart of Accounts for Non-Bank Financial Institutions

INSTRUCTION NO. 15/2019 of September 6 SUBJECT: FINANCIAL SYSTEM − Chart of Accounts for Non-Bank Financial Institutions

Whereas it is necessary to standardize and harmonize the Chart of Accounts for Non-Bank Financial Institutions regarding accounting records, recording procedures and criteria, rules for information disclosure, as well as the adoption of Value Added Tax (VAT) in the activities of non-bank financial institutions under the supervision of the National Bank of Angola; Considering the ongoing tax reform process, approved by the Executive Branch via Presidential Decree No. 258/17 of October 27 – which establishes actions to improve the country's current economic and social situation, including the need to replace the current Consumption Tax with Value Added Tax (VAT), ensuring through this measure a certain predictability and stability of tax revenue and transparency in its application; Whereas there is a need to harmonize and clarify the accounting recording methodology for active and passive operations for the calculation, settlement, and payment of the tax, among other accounting obligations for operations subject to Value Added Tax (VAT), in accordance with Law No. 7/19 of April 24, which approves the Value Added Tax Code; Considering that the aforementioned process will allow for better analysis, performance evaluation, and control of the activities carried out by the institutions, comparability and transparency, high-quality financial reporting, as well as the continued development of the non-bank financial institutions sector under the supervision of the National Bank; In accordance with the combined provisions of Article 21 and Article 51, both of Law No. 16/10 of July 15 - National Bank of Angola Law, Article 93 of Law No. 12/15 of June 17 - Basic Law of Financial Institutions, and Articles 4 and 5 of Notice No. 05/2019 of August 30, regarding the accounting standardization process of the banking system.

I HEREBY DETERMINE:

1. Objective and Scope 1.1. This Instruction establishes the Chart of Accounts for Non-Bank Financial Institutions, hereinafter abbreviated as PCIFNB, which applies to Non-Bank Financial Institutions under the supervision of the National Bank of Angola and establishes the procedures to be observed in the accounting recording of active and passive operations subject to Value Added Tax (VAT).
2. Creation of Sub-accounts 2.1. For accounting recording purposes of active and passive operations related to Value Added Tax, the following sub-accounts are created: 2.1.1. Assets: 1.80.20.40 - Value Added Tax; 2.1.2. Liabilities: 2.80.20.40 - Value Added Tax; and, 2.1.3. Result: 5.10.10.40.10.10 - Taxes and Fees not levied on Income. 2.2. Without prejudice to the provisions of Point 2 of this Instruction, banking financial institutions may create other control sub-accounts in their internal trial balances, segregating them according to the nature of active and/or passive operations, for VAT accounting recording purposes. 2.3. This PCIFNB is mandatory in application, and no alterations are permitted, particularly regarding the nomenclature, code, and content of accounts, without express authorization from the National Bank of Angola.
3. Chart of Accounts The Chart of Accounts for Non-Bank Financial Institutions, as per the Annex which forms an integral part of this Instruction, is structured as follows: a) Index – contains the PCIFNB structure, namely: (i) basic rules; (ii) list of accounts; (iii) function of accounts; (iv) accounting schemes; and (v) accounting documents. b) Basic Rules – specifies general rules, objectives, records, accounting principles, evaluation and accounting appropriation criteria, standardized list of accounts, information reporting, and general provisions. c) List of Accounts – specifies the accounts that institutions must consider for the accounting recording of operations carried out by them (assets, liabilities, interests that do not control them, equity, result, and off-balance sheet accounts, auxiliary accounts or tables, including sub-accounts and their respective specification codes. d) Function of Accounts and Accounting Schemes – guide PCIFNB users in choosing the most applicable account for the accounting act and fact, as well as facilitate the recording process and automation of accounting procedures in electronic systems. e) Accounting Documents – models for the standardized and adequate publication of accounting information by financial institutions, enabling comparability among various institutions across different periods, as well as understanding and analysis of the information by external users of financial statements. f) Creation of Sub-accounts and Specification Codes – for accounting recording purposes of active and passive operations of Value Added Tax, containing the following elements: (i) assets, (ii) liabilities, and (iii) results.
4. Doubts and Omissions Doubts and omissions resulting from the interpretation and application of this Instruction are clarified by the National Bank of Angola.
5. Repeal Instruction No. 12/09 of December 21 and all regulations contrary to the provisions of this Instruction are hereby repealed.
6. Entry into Force This Instruction enters into force on the date of its publication. PUBLISH. Luanda, September 6, 2019. THE GOVERNOR JOSÉ DE LIMA MASSANO

CHART OF ACCOUNTS FOR NON-BANK FINANCIAL INSTITUTIONS

1. Presentation
2. Basic Norms • General Rules o Objective o Recording o Accounting Principles o Evaluation and Accounting Appropriation Criteria o Standardized List of Accounts o Information Reporting o General Provisions o Cash and Cash Equivalents o Liquidity Applications o Securities and Financial Instruments o Financial Derivative Instruments o Credits in the Payment System o Foreign Exchange Operations o Credits o Other Values o Commercial and Industrial Inventories and Advances to Suppliers o Fixed Assets o Reduction in Recoverable Value of Assets (Impairment) o Other Fundraising/Captations o Provisions and Contingencies o Potential Results o Consolidation of Financial Statements o Disclosure of Financial Statements o Taxes INDEX CHART OF ACCOUNTS FOR NON-BANK FINANCIAL INSTITUTIONS - PCIFNB

o Monetary Update 3. List of Accounts • Assets o Cash and Cash Equivalents o Liquidity Applications o Securities and Financial Instruments o Financial Derivative Instruments o Credits in the Payment System o Foreign Exchange Operations o Credits o Commercial and Industrial Customers o Other Values o Commercial and Industrial Inventories and Advances to Suppliers o Fixed Assets • Liabilities o Deposits o Fundraising for Liquidity o Fundraising with Securities and Financial Instruments o Financial Derivative Instruments o Obligations in the Payment System o Foreign Exchange Operations o Other Fundraising o Customer Advances o Other Obligations o Commercial and Industrial Suppliers o Provisions for Probable Liabilities o Technical Provisions • Minority Interests o Share Capital o Monetary Update Reserve of Share Capital o Reserves and Funds o Potential Results o Carried Forward Results o (-) Anticipated Dividends o Result from Change in Accounting Criteria o (-) Treasury Shares or Quotas • Equity o Share Capital o Monetary Update Reserve of Share Capital o Reserves and Funds o Potential Results o Carried Forward Results o (-) Anticipated Dividends o Result from Change in Accounting Criteria o (-) Treasury Shares or Quotas • Results o Operating Result o Non-Operating Result o Charges on Current Result o Minority Interests o Result Calculation o Variations in Cash o Variations in Equity • Off-Balance Sheet Accounts o Control Accounts o Liabilities for Contingent Values o Debtors and Creditors for Off-Balance Sheet Liabilities • Auxiliary Accounts o Codes for Value Specifications o Codes for Maturity and Delay Periods o Codes for Risk Levels o Currency Codes o Institutional Sector Codes o Foreign Exchange Residence Codes o Codes for Types of Financial Instruments and Operations o Economic Activities Codes (CAE) o Guarantee Type Codes o Codes for Categories of Financial Derivative Instruments o Codes for Operation Recording Locations o Codes for Assets Used as Collateral o Country Codes o Province and Municipality Codes 4. Function of Accounts • Assets o Cash and Cash Equivalents o Liquidity Applications o Securities and Financial Instruments o Financial Derivative Instruments o Credits in the Payment System o Foreign Exchange Operations o Credits o Commercial and Industrial Customers o Other Values o Commercial and Industrial Inventories and Advances to Suppliers o Fixed Assets • Liabilities o Deposits o Fundraising for Liquidity o Fundraising with Securities and Financial Instruments o Financial Derivative Instruments o Obligations in the Payment System o Foreign Exchange Operations o Other Fundraising o Commercial and Industrial Suppliers o Other Obligations o Customer Advances o Provisions for Probable Liabilities o Technical Provisions • Minority Interests o Share Capital o Monetary Update Reserve of Share Capital o Reserves and Funds o Potential Results o Carried Forward Results o (-) Anticipated Dividends o Result from Change in Accounting Criteria o (-) Treasury Shares or Quotas • Equity o Share Capital o Monetary Update Reserve of Share Capital o Reserves and Funds o Potential Results o Carried Forward Results o (-) Anticipated Dividends o Result from Change in Accounting Criteria o (-) Treasury Shares or Quotas • Income Statement Result o Operating Result o Non-Operating Result o Charges on Current Result o Minority Interests o Result Calculation o Variations in Cash o Mutations in Treasury Shares or Quotas o Variations in Equity • Off-Balance Sheet Accounts o Control Accounts o Liabilities for Contingent Values o Debtors and Creditors for Off-Balance Sheet Liabilities • Auxiliary Accounts o Codes for Value Specifications o Codes for Maturity and Delay Periods o Codes for Risk Levels o Currency Codes o Institutional Sector Codes o Foreign Exchange Residence Codes o Codes for Types of Financial Instruments and Operations o Economic Activities Codes (CAE) o Guarantee Type Codes o Codes for Categories of Financial Derivative Instruments o Codes for Operation Recording Locations o Codes for Assets Used as Collateral o Country Codes o Province and Municipality Codes o Non-Standardized Codes by PCIFNB 5. Accounting Schemes o Cash and Cash Equivalents o Liquidity Applications o Securities and Financial Instruments o Financial Derivative Instruments o Credits in the Payment System o Foreign Exchange Operations o Credits o Other Values o Fixed Assets o Deposits Section 5-2-10 o Fundraising for Liquidity o Obligations in the Payment System o Other Fundraising o Other Obligations o Provisions and Contingencies o Potential Results o Result Calculation o Monetary Update 6. Accounting Documents • Models for Publication o Balance Sheet o Income Statement o Trial Balance

1. The Chart of Accounts for Non-Bank Financial Institutions – PCIFNB - aims to standardize accounting records, systematize recording procedures and criteria, establish rules for information disclosure, all in line with international best practices. Furthermore, the PCIFNB seeks to rationalize and standardize the use of accounts, thereby enabling monitoring of the financial system, particularly regarding the analysis, performance evaluation, and control of activities carried out by institutions under the supervision of the National Bank of Angola (BNA).
2. To achieve this objective, accounting procedures established in the PCIFNB were sought to be converged with international accounting standards (IFRS1 – International Financial Reporting Standards) issued by the International Accounting Standards Board (IASB).
3. In this context, internationally recommended accounting criteria were incorporated such as fair value measurement, equity method, asset revaluation, monetary update, impairment, among others, as well as procedures to facilitate better understanding of the economic-financial situation of the conglomerate or economic group in which the institution is embedded, such as consolidation of financial statements and disclosure rules.
4. Additionally, the conceptual structure of the PCIFNB aims to simplify and reduce the amount of information to be provided by institutions in a segmented manner. Designed to fully meet the BNA's current needs in terms of financial information, the plan is flexible and allows theoretically unlimited alterations and expansions, which will facilitate the inclusion, alteration, or exclusion of any type of information. This immunity to obsolescence and the simplification of information to be submitted by institutions were relevant aspects for the BNA's decision-making in adopting the PCIFNB.
5. In terms of structure, the PCIFNB is divided into six parts, namely:

1 IFRS includes IAS (International Accounting Standards) and SIC (Interpretations). PRESENTATION CHART OF ACCOUNTS FOR NON-BANK FINANCIAL INSTITUTIONS - PCIFNB

a) Presentation; b) Basic rules; c) List of accounts; d) Functions of accounts; e) Accounting schemes; and f) Accounting documents. 6. The basic rules contain general and accounting principles, clarify concepts of financial market operations, and determine provisions and criteria applicable to accounting acts and facts. They embody the foundation and security of the PCIFNB, according to internationally accepted accounting recommendations. 7. The list of accounts, defined exclusively by the National Bank of Angola, specifies the accounts that financial institutions are obliged to observe. They are subdivided into basic accounts and auxiliary accounts. 8. Basic accounts contain the main information that must be segregated and disclosed by institutions. Auxiliary accounts, an innovation in accounting plans, detail the basic accounts, enabling the identification of recording specifications such as term, currency, indexed, financial instrument, institutional sector, guarantee, location (countries, provinces, and municipalities), residence (foreign or domestic), among others. As an additional advantage of the PCIFNB, the composition can be increased according to the BNA's information needs regarding financial institutions. 9. The functions of accounts and accounting schemes serve a didactic purpose to guide PCIFNB users in choosing the most applicable account for the accounting act and fact, as well as facilitate the recording process and automation of accounting procedures in electronic systems. 10. The formatting of accounting statements for publication purposes guarantees an adequate standard of information disclosure by financial institutions. This uniformity enables comparability among various institutions across different periods, while also favoring the understanding and analysis of information by external users of financial institutions, reaching a wide spectrum of stakeholders such as investors, depositors, shareholders, employees, professional associations, academic community, consultants, legislators, international institutions, as well as regulatory authorities. 11. The ordering adopted in the PCIFNB index relates the codes assigned to accounts in the list of accounts to their respective basic rules, functions, and accounting schemes for each account. Thus, once the account code is identified, the existing information is easily found. 12. Another noteworthy point is the economy and ease of maintenance of the Manual. Its organization allows alterations to be made by replacing specific pages, reducing all related costs. 13. Finally, the National Bank of Angola hopes that, with the implementation of the PCIFNB, it will contribute to organizational improvement, enhance risk management, and provide productivity gains in financial institutions in Angola, empower the Financial System in the face of continuous transformations in the international financial market, and provide information that benefits accounting users, especially the financial system which has extensive links with all economic agents in society. Concurrently, the PCIFNB intends to offer a greater amount of qualitative information to improve the BNA's Supervision work, in the constant search for the solidity of Angola's Financial System.

➢ OBJECTIVE

1. The Chart of Accounts for Non-Bank Financial Institutions (PCIFNB) aims to standardize accounting records, systematize recording procedures and criteria, establish rules for information disclosure, align with international best practices, as well as rationalize and standardize the use of accounts, thereby enabling monitoring of the financial system, particularly regarding the analysis, performance evaluation, and control of activities carried out by institutions under the supervision of the National Bank of Angola (BNA).
2. To achieve this objective, accounting procedures established in the PCIFNB were sought to be converged with international accounting standards (IFRS2 – International Financial Reporting Standards) issued by the International Accounting Standards Board (IASB).
3. In this context, internationally recommended accounting criteria were incorporated such as fair value measurement, hedge accounting, equity method, asset revaluation, monetary update, impairment, among others, as well as procedures to facilitate better understanding of the economic-financial situation of the conglomerate or economic group in which the institution is embedded, such as consolidation of financial statements and disclosure rules.
4. Additionally, the conceptual structure of the PCIFNB aims to simplify and reduce the amount of information to be provided by institutions in a segmented manner. Designed to fully meet the BNA's current needs in terms of

2 IFRS includes IAS (International Accounting Standards) and SIC (Interpretations). BASIC NORMS CHART OF ACCOUNTS FOR NON-BANK FINANCIAL INSTITUTIONS - PCIFNB

financial information, the plan is flexible and allows theoretically unlimited alterations and expansions, which will facilitate the inclusion, alteration, or exclusion of any type of information. This immunity to obsolescence and the simplification of information to be submitted by institutions were relevant aspects for the BNA's decision-making in adopting the PCIFNB. 5. The norms and procedures consolidated in this chart of accounts are mandatory for all institutions under BNA supervision, as well as those that may be defined in the future. ➢ RECORDING

1. Accounting recording must be complete, maintained permanently for all administrative acts and facts capable of modifying, immediately or not, the asset composition of the entity.
2. Recording must be carried out using valid vouchers that allow clear understanding and validity of the administrative acts and facts practiced, noting that in the case of electronic transactions, proof must be provided through listings or magnetic files of the records.
3. The supporting documents for operations subject to recording constitute, for all purposes, the accounting movements and must be archived sequentially alongside the accounting movement, or in a dedicated archive according to their nature.
4. Recording that does not comply with the standards established in this Chart of Accounts or is kept delayed for a period exceeding 15 (fifteen) days following the closing of each month, as well as the provision of incorrect information or the lack or delay of accounting reconciliations, subject the institution, its administrators, and other responsible members to the penalties provided for in current legislation.
5. The institution that centralizes accounting must observe the maintenance of accounting books in a single branch of the locality, to be indicated by the institution.
6. The institution that maintains centralized execution accounting must keep, at the origin premises, copies of the accounting records of the respective movements, as well as financial statements and other documents provided for in this Chart of Accounts, allowing archiving in electronic or microfilm form.
7. The institution that maintains decentralized accounting must possess for the headquarters and each branch the accounting recording books provided for in current legislation.
8. In addition to legal provisions and specific regulatory requirements for recording, it falls to the institution to observe general accounting principles with particular attention to the following aspects: a) adopt uniform methods and criteria over time, with relevant modifications being disclosed in notes to accounts and quantifying their effects on financial statements, when applicable; b) record revenues and costs in the period in which they occur and not on the date of actual receipt or disbursement, in observance of the accrual principle; c) carry out the appropriation of revenues, costs, gains, profits, losses, and deficits, at least at the end of each month; d) perform the necessary reconciliations of accounting titles with their respective analytical controls and keep them updated, archiving documentation for at least 5 (five) years, or for a longer period when determined by the National Bank of Angola, for potential inquiries and confirmations. e) close accounts that record revenues and costs and calculate the result at the end of the fiscal year.
9. The professional responsible for accounting must conduct the reg