Decision on the Types and Content of Banks' Financial Statements and the Notes to Those 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 2 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 types and the content of the banks' financial statements, and the notes to those statements (Official Gazette of the Republic of Macedonia No. 83/17)

1. This Decision shall prescribe the types and the contents of banks' financial
   statements, and the notes to those statements.
   The financial statements are given in an annex that is an integral part of this Decision. The contents of the individual items in the Notes to the financial statements and the requirements for disclosure and presentation of the data in the financial statements should be in accordance with 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. 83/17).
2. The cash values in the financial statements shall be expressed in thousands
   of denars.
3. Banks shall enter the data into the annual financial statements for the
   current and the previous financial year.
   In the statements referred to in paragraph 1 of this item, the financial year shall cover the period from 1 January to 31 December. In the statements referred to in paragraph 1 of this item, the data from the audited financial statements for the previous year shall be entered into the column for the previous year. As an exception to paragraphs 1 and 3 of this item, in the annual financial statements as of 31 December 2018 in the Notes 1.A, 2.1.A, 2.1.D and in the Table “Movement of the changes in the bank’s credit risk, for financial liabilities that are recognized at fair value” in the Note 33, banks shall not enter the data for the previous financial year. As an exception to paragraphs 1 and 3 of this item, in the annual financial statements as of 31 December 2018 in the Tables “Movement of the impairment” in the Notes 18, 22.1, 22.2.А, 23.1, 23.2 and 25, from the data for the previous financial year, banks shall fill in only the column “Total impairment”.

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4. For the purposes of this Decision, the semi-annual financial statements
shall consist of:

• Profit and Loss Account;
• Statement of Comprehensive Income;
• Balance Sheet;
• Statement of Changes in Equity and Reserves;
• Statement of Cash Flows.
  When preparing the statements referred to in paragraph 1 of this item, banks shall not be obliged to fill in the column for the previous year. In the statements referred to in paragraph 1 of this item, the column for the current year shall cover the period from 1 January to 30 June.

5. The statements referred to in items 3 and 4 of this Decision, prior to their
   submission to the National Bank of the Republic of Macedonia (hereinafter: the National Bank), shall be signed by the members of the bank's Management Board with a mark on the signing date.
6. Banks shall submit the semi-annual, annual and consolidated financial
   statements to the National Bank within the time limits prescribed in 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).
7. The bank for which a decision on opening a bankruptcy proceeding or
   implementing a liquidation procedure, has been adopted will prepare financial statements as of one day before the date of the decision on opening a bankruptcy proceeding or implementing a liquidation procedure. The bank shall submit these financial statements to the National Bank within 10 days after the date of adopting the decision on opening a bankruptcy proceeding or implementing a liquidation procedure.
8. Banks shall fill in the Notes 1.А.а, 1.B.1, 1.B.2, 1.B.3 and 2.1.A.a only in
   the annual financial statements as of 31 December 2018.
   Banks shall not fill in the Notes referred to in paragraph 1 of this item in the annual financial statements for the periods after 1 January 2019.
9. In the annual financial statements as of 31 December 2018, banks shall
   represent the difference referred to in item 3 paragraph 2 of the Decision on the methodology for recording and valuation of the accounting items and for preparation of the financial statements in the Statement of Changes in Equity and Reserves for the period from 1 January to 31 December 2018 as an adjustment to the opening balance of the retained earnings or accumulated losses.
10. In the annual financial statements as of 31 December 2018, in the
    Note 12 banks shall represent on a collective basis the data for the previous 2017 for the impairment and special reserve for off-balance sheet exposure on an individual and on a group basis.

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11. The provisions of this Decision shall also apply to foreign bank
branches and savings houses in the Republic of Macedonia.
12. Once this Decision starts being applied, the Decision on the types and
the contents of banks' financial statements (Official Gazette of the Republic of Macedonia No. 169/10, 152/11, 54/12 and 166/13) shall become void.
13. 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. D. No. 02-15/V-3/2017 Dimitar Bogov 22 June 2017 Governor and President Skopje of the National Bank of the Republic of Macedonia Council