Decision on the Methodology for Recording and Valuation of Accounting Items and Preparation of Financial Statements

NATIONAL BANK OF THE REPUBLIC OF MACEDONIA Pursuant to Article 47 paragraph 1 indent 6 of the Law on the National Bank of the Republic of Macedonia (Official Gazette of the Republic of Macedonia No. 158/10, 123/12, 43/14, 153/15 and 6/16) and Article 103 paragraph 1 item 3 of the Banking Law (Official Gazette of the Republic of Macedonia No. 67/07, 90/09, 67/10, 26/13, 15/15, 153/15 and 190/16), the National Bank of the Republic of Macedonia Council adopted the following DECISION on the Methodology for recording and valuation of the accounting items and for preparation of the financial statements (Official Gazette of the Republic of Macedonia No. 83/17)

1. This Decision shall prescribe the Methodology for recording and valuation
   of the accounting items and for preparation of the financial statements (hereinafter:
   Methodology).
   The Methodology is an annex to this Decision and is its integral part.
2. Banks shall keep their business records, the business and accounting
   documentation and prepare the financial statements pursuant to the Methodology.
3. Banks shall comply the maintenance of their business records with the
   Methodology as of 1 January 2018.
   Banks shall, in the commencement of the application of the Methodology, reassess all financial assets and financial liabilities as of 31 December 2017 and on 1 January 2018, classify and measure in accordance with the provisions of Chapters 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 4.1, 4.2, 4.3, 4.4, 4.5, 4.6 and 5.7. The bank shall record the differences that will arise from the reassessment of all financial assets and financial liabilities as an adjustment to the opening balance on the account 906 - Retained earnings / Accumulated losses on 1 January 2018.
4. The provisions of this Decision shall also apply to foreign bank branches
   and savings houses in the Republic of Macedonia.
5. Once this Decision starts being applied, the Decision on the Methodology
   for recording and valuation of the accounting items and for preparation of the financial statements (Official Gazette of the Republic of Macedonia No. 169/10, 165/12, 50/13 and 110/13) shall become void.
6. This Decision shall enter into force on the eighth day from the date of its
   publication in the Official Gazette of the Republic of Macedonia, and shall apply from 1 January 2018.

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D.No. 02-15/V-2/2017 Dimitar Bogov
22 June 2017 Governor
Chairman
Skopje of the National Bank of the Republic of Macedonia Council