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