Regulation No. 2016-02 — Regulation on the preparation of company financial statements and consolidated financial statements of authorized entities

REGULATION ON THE PREPARATION OF COMPANY FINANCIAL STATEMENTS AND CONSOLIDATED FINANCIAL STATEMENTS OF AUTHORIZED ENTITIES Year 2016 - number 02 (Consolidated text as of 29/01/2026 - Update XII)

Central Bank of the Republic of San Marino
Regulation No. 2016-02 on the preparation of company financial statements and consolidated financial statements of authorized entities - Update XII 2
TABLE OF CONTENTS
PART I GENERAL PROVISIONS....................................................................................................................6
Title I Legislative sources and definitions.............................................................................................................. 6
Article I.I.1 - Legislative sources.........................................................................................................................................................................6
Article I.I.2 - Definitions.................................................................................................................................................................................6
Article I.I.3 - Taxonomy of credits..........................................................................................................................................................12
Title II Objectives and structure of the Regulation........................................................................................... 18
Article I.II.1 - Purpose ....................................................................................................................................................................................18
Article I.II.2 - References.......................................................................................................................................................................19
Article I.II.3 - Structure .................................................................................................................................................................................19
PART II GENERAL PRINCIPLES FOR THE PREPARATION OF ANNUAL FINANCIAL STATEMENTS AND CONSOLIDATED FINANCIAL STATEMENTS ..................................................................................................................................................... 20
Title I Scope of application and subject matter of the regulation......................................................................... 20
Article II.I.1 - Scope of application .......................................................................................................................................................20
Article II.I.2 - Documentation of company financial statements and consolidated financial statements ..........................................................................20
Article II.I.3 - Responsibility .......................................................................................................................................................................21
Title II General provisions relating to company financial statements and consolidated financial statements....................... 21
Article II.II.1 - General provisions relating to the preparation of company financial statements.........................................................................21
Article II.II.2 - General provisions relating to the preparation of consolidated financial statements. ....................................................................23
Article II.II.3 - General Principles.................................................................................................................................................................23
Article II.II.4 - Accounting at “settlement date”........................................................................................................................................24
Article II.II.5 - Consistency of application...........................................................................................................................................................24
Article II.II.6 - Link between accounting and financial statements..........................................................................................................................25
PART III REGULATION OF THE VALUATION OF COMPANY FINANCIAL STATEMENT ITEMS........ 26
Title I General principles and criteria for the valuation of financial statement items............................................. 26
Article III.I.1 - General valuation principles ........................................................................................................................................26
Title II Provisions relating to the Statement of Financial Position................................................................................ 26
Article III.II.1 - General Criteria..................................................................................................................................................................26
Article III.II.2 - Intangible Assets ........................................................................................................................................................27
Article III.II.3 - Tangible Assets..............................................................................................................................................................28
Article III.II.4 - Financial Assets ..........................................................................................................................................................28
Article III.II.5 - Assets not constituting fixed assets....................................................................................................................................29
Article III.II.6 - Analytical and lump-sum write-downs.................................................................................................................................31
Article III.II.7 - Foreign currency transactions .........................................................................................................................................33
Article III.II.8 - Accounting for equity investments using the equity method.........................................................................34
PART IV ACCOUNTING FOR INDIVIDUAL ITEMS OF THE COMPANY FINANCIAL STATEMENTS .................... 36
Title I Balance Sheet Asset Items ............................................................................................................ 36
Article IV.I.1 - General criteria for accounting for balance sheet asset items ...........................................................................36
Article IV.I.2 - Cash on hand and balances with central banks and postal entities (item no. 10)......................................36
Article IV.I.3 - Treasury bills and other financial instruments eligible for refinancing with central banks (item no. 20)
...............................................................................................................................................................................................................................36
Article IV.I.4 - Loans to credit institutions (item no. 30) ..........................................................................................................................37

Central Bank of the Republic of San Marino
Regulation No. 2016-02 on the preparation of company financial statements and consolidated financial statements of authorized entities - Update XII 3
Article IV.I.5 - Loans to customers (item no. 40)..................................................................................................................................37
Article IV.I.6 - Bonds and other DEBT FINANCIAL INSTRUMENTS (item no. 50) .........................................................................38
Article IV.I.7 - Shares, units and other equity financial instruments (item no. 60) ...........................................................................38
Article IV.I.8 - Equity investments (item no. 70) and Equity investments in group companies (item no. 80) ..................................................38
Article IV.I.9 - Intangible assets (item no. 90) ....................................................................................................................................38
Article IV.I.10 - Tangible assets (item no. 100).....................................................................................................................................39
Article IV.I.11 - Subscribed capital not paid in (item no. 110).......................................................................................................39
Article IV.I.12 - Own shares or units (item no. 120) ...........................................................................................................................39
Article IV.I.13 - Other assets (item no. 130) ..............................................................................................................................................39
Article IV.I.14 - Accrued income and prepaid expenses (item no. 140)................................................................................................................................40
Title II Balance Sheet Liability Items ........................................................................................................ 40
Article IV.II.1 - Debts to credit institutions (item no. 10)..........................................................................................................................40
Article IV.II.2 - Debts to customers (item no. 20) .................................................................................................................................40
Article IV.II.3 - Debts represented by FINANCIAL INSTRUMENTS (item no. 30) ..................................................................................41
Article IV.II.4 - Other liabilities (item no. 40)..............................................................................................................................................41
Article IV.II.5 - Accrued expenses and deferred income (item no. 50)..............................................................................................................................41
Article IV.II.6 - Employee severance indemnities (item no. 60)..................................................................................................................41
Article IV.II.7 - Provisions for risks and charges (item no. 70) .............................................................................................................41
Article IV.II.8 - Loan loss provisions (item no. 80) ................................................................................................................................42
Article IV.II.9 - General financial risk fund (item no. 90) ...............................................................................................................42
Article IV.II.10 - Subordinated liabilities (item no. 100) .............................................................................................................................42
Article IV.II.11 - Subscribed capital (item no. 110)...............................................................................................................................42
Article IV.II.12 - Share premium (item no. 120)....................................................................................................................................43
Article IV.II.13 - Reserves (item no. 130) and Revaluation reserves (item no. 140)...............................................................................43
Article IV.II.14 - Retained earnings (losses) (item no. 150).........................................................................................................43
Article IV.II.15 - Profit (loss) for the year (item no. 160).....................................................................................................................43
Title III Guarantees and Commitments ........................................................................................................ 43
Article IV.III.1 - Guarantees issued (item no. 10).....................................................................................................................................43
Article IV.III.2 - Commitments (item no. 20).......................................................................................................................................................43
Title IV Income Statement Items ............................................................................................................ 44
Article IV.IV.1 - Interest income and similar revenues (item no. 10) – Interest expense and similar charges (item no. 20) ................44
Article IV.IV.2 - Dividends and other income (item no. 30) .........................................................................................................................45
Article IV.IV.3 - Commission income (item no. 40) – Commission expense (item no. 50)..................................................................45
Article IV.IV.4 - Profits (losses) from financial transactions (item no. 60)...........................................................................................46
Article IV.IV.5 - Other operating income (item no. 70) – Other operating expenses (item no. 80)......................................................47
Article IV.IV.6 - Administrative expenses (item no. 90)................................................................................................................................47
Article IV.IV.7 - Value adjustments on intangible and tangible assets (items no. 100 and no. 110) ....................................47
Article IV.IV.8 - Provisions for risks and charges (item no. 120) – Provisions for loan loss funds (item no. 130)47
Article IV.IV.9 - Value adjustments and reversals on loans and provisions for guarantees and commitments (items no. 140 and no. 150) ..48
Article IV.IV.10 - Value adjustments and reversals on FINANCIAL ASSETS (items no. 160 and no. 170).............................48
Article IV.IV.11 - Profit (loss) from ordinary activities (item no. 180) .........................................................................48
Article IV.IV.12 - Extraordinary income (item no. 190) – Extraordinary charges (item no. 200)..............................................................48
Article IV.IV.13 - Extraordinary profit (loss) (item no. 210)................................................................................................................49
Article IV.IV.14 - Change in the General financial risk fund (item no. 230) ..............................................................................49
Article IV.IV.15 - Profit (loss) for the year (item 240).........................................................................................................................49
Title V Provisions regarding the recognition in financial statements of certain transactions......................... 49

Central Bank of the Republic of San Marino
Regulation No. 2016-02 on the preparation of company financial statements and consolidated financial statements of authorized entities - Update XII 4
Article IV.V.1 - Transfer of financial instruments from one portfolio to another ............................................................................49
Article IV.V.2 - Portfolio subject to collection, after collection or discounted ..........................................................................................50
Article IV.V.3 - Repos and reverse repos ................................................................................................................................................51
Article IV.V.4 - Assets transferred or received as collateral ............................................................................................................................52
Article IV.V.5 - Finance lease transactions (active) ....................................................................................................................................52
Article IV.V.6 - Options ...............................................................................................................................................................................53
Article IV.V.7 - Credit derivative contracts..............................................................................................................................................54
Article IV.V.8 - Securitization transactions......................................................................................................................................54
PART V EXPLANATORY NOTES.......................................................................................................................... 56
Title I General rules for compiling the explanatory notes ................................................................ 56
Article V.I.1 - Structure and compilation rules ....................................................................................................................................56
Article V.I.2 - Information relating to off-balance sheet accounts.............................................................................................................................57
Title II Information to be included in the explanatory notes................................................................. 57
Article V.II.1 - General Information .......................................................................................................................................................57
Article V.II.2 - Information on loans and debts ..................................................................................................................................57
Article V.II.3 - Information relating to fixed assets ..................................................................................................................................58
Article V.II.4 - Information relating to equity investments........................................................................................................................59
Article V.II.5 - Subordinated Liabilities .........................................................................................................................................................60
Article V.II.6 - Information relating to capital.......................................................................................................................................60
Article V.II.7 - Information relating to the income statement.....................................................................................................................60
Article V.II.8 - Other information ..............................................................................................................................................................61
PART VI OTHER DOCUMENTATION COMPRISING THE COMPANY FINANCIAL STATEMENTS............................. 63
Title I Management Report and Corporate Governance Report ...................................................................... 63
Article VI.I.1 - Management report.....................................................................................................................................................63
Article VI.I.2 - Corporate governance report .....................................................................................................................................64
PART VII PROVISIONS REGARDING THE PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS.................. 65
Title I General Part.................................................................................................................................... 65
Article VII.I.1 - Obligations for preparation.......................................................................................................................................................65
Article VII.I.2 - Exemptions from the obligation to prepare consolidated financial statements ..................................................................................67
Article VII.I.3 - Cases of exclusion from consolidation..........................................................................................................................68
Title II Methods for preparing consolidated financial statements............................................................................ 69
Article VII.II.1 - General criteria..................................................................................................................................................................69
Article VII.II.2 - Full consolidation ..............................................................................................................................................................69
Article VII.II.3 - Consolidation of equity investments ..........................................................................................................................69
Article VII.II.4 - Third-party shares or units....................................................................................................................................................70
Article VII.II.5 - Intercompany relationships ...........................................................................................................................................70
Article VII.II.6 - Reference date of the consolidated financial statements .............................................................................................71
Article VII.II.7 - Valuations........................................................................................................................................................................71
Article VII.II.8 - Proportional consolidation....................................................................................................................................71
Article VII.II.9 - Accounting for associated companies using the equity method ......................................................................72
Article VII.II.10 - Content of the consolidated explanatory notes ..........................................................................................................72
Article VII.II.11 - Consolidated management report..........................................................................................................................74
PART VIII PROVISIONS REGARDING ACCOUNT AUDIT....................................................... 75
Title I Financial statement audit........................................................................................................................ 75

Central Bank of the Republic of San Marino
Regulation No. 2016-02 on the preparation of company financial statements and consolidated financial statements of authorized entities - Update XII 5
Article VIII.I.1 - Obligations for auditing annual financial statements and consolidated financial statements.............................................................75
Article VIII.I.2 - Content of the Audit Report. ....................................................................................................................................75
PART IX PUBLICITY ....................................................................................................................................... 77
Title I Publicity of financial statements and consolidated financial statements ......................................................................... 77
Article IX.I.1 - Publicity of financial statements and