Explanation on the Decision "On Introducing Changes and Additions to the Chart of Accounts of Accounting in Commercial Banks"

In accordance with the Law "On the Central Bank of the Republic of Uzbekistan", changes and additions were made to the Chart of Accounts for the purpose of optimizing bank processes, correctly reflecting and maintaining bank operations in accounting and accounts in commercial banks.

With these changes and additions to the Chart of Accounts:

• reserves are formed for assets classified as standard;

• income accounting is maintained to prevent double taxation on the reversal of previously created reserves;

• accounting for interest income and expenses on derivative instruments is maintained;

• accounting for funds financing customer investment and "green energy" projects is maintained;

• settlements with the currency exchange are maintained separately;

• new separate accounts are added for separate accounting of funds in the liability part for the Rapid Payment System and Central Bank clearing systems.

Due to the invalidation of the "Instruction on Accounting for Low-Value and Rapidly Wearing Items in Banks of the Republic of Uzbekistan" (registration number 1496, July 15, 2005), "Regulation on the Procedure for Accounting for Financial Assets in Commercial Banks" (registration number 1528, November 30, 2005), "Rules for Accounting for Cash Operations in Banks of the Republic of Uzbekistan" (registration number 1602, July 24, 2006) and "Instruction on Accounting for Transactions with Securities in Commercial Banks" (registration number 1885, January 19, 2009), accounting entries for financial assets, low-value and rapidly wearing items, cash operations and transactions with securities from these documents were included in the Chart of Accounts.