Regulation on Requirements for the Chart of Accounts of Payment System Operators/Payment Organizations — NBKR — KG

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Date of creation: 2021-12-03

Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 1, 2021 No. 2021-P-14/66-1-(PS)

REGULATION "On Requirements for the Chart of Accounts of Payment System Operators/Payment Organizations"

Chapter 1. General Provisions

This Regulation establishes requirements for the formation of a chart of accounts (hereinafter – chart of accounts) by payment system operators/payment organizations (hereinafter – PSO/PO) in accordance with the laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activities", "On the Payment System of the Kyrgyz Republic" and "On Accounting", operating based on licenses issued by the National Bank of the Kyrgyz Republic (hereinafter – National Bank).
The chart of accounts is a structured, economically justified list of accounts, within which each account has a name and numerical designation, is included in a section and group according to a specific classification criterion.
The chart of accounts is developed by PSO/PO in accordance with International Financial Reporting Standards (hereinafter – IFRS) and approved in the manner established by PSO/PO, taking into account the requirements of this Regulation, the Regulation "On Basic Requirements for the Accounting Policy of PSO/PO", the Instruction on the Application of the Chart of Accounts for Financial and Economic Activities of Business Entities, Non-Profit Organizations (excluding Budgetary Institutions), and other regulatory legal acts of the National Bank.
Accounting, according to the chart of accounts, must ensure the preparation of financial statements.

Chapter 2. General Requirements for the Chart of Accounts

PSO/PO may use the chart of accounts for PSO/PO approved by a Resolution of the Board of the National Bank as a standard chart of accounts.
The chart of accounts must:

ensure the preparation of main financial statements in accordance with IFRS;
be flexible, having the ability to expand in the future due to changes in the structure or scope of activities of PSO/PO;
provide sufficient detail for the preparation of main financial and management reports.

The chart of accounts is based on the classification of accounts according to economic content, by purpose of operations performed by PSO/PO, and includes accounts subject to registration in accounting.
The number of accounts is determined by the needs of PSO/PO when preparing financial statements.
Along with the chart of accounts, its description is approved, indicating the purpose of each account, a description of accounted operations and limitations.

Chapter 3. Requirements for the Structure of the Chart of Accounts

The chart of accounts must ensure accounting for all operations performed by PSO/PO and include balance sheet and off-balance sheet accounts.
The chart of accounts must include the following sections and groups of accounts:

Section 1000 'Current assets';
Section 2000 'Non-current assets';
Section 3000 'Short-term liabilities';
Section 4000 'Long-term liabilities';
Section 5000 'Equity';
Section 6000 'Operating income';
Section 7000 'Operating expenses';
Section 8000 'General and administrative expenses';
Section 9000 'Non-operating income and expenses';
Section 11000 'Off-balance sheet accounts'.

When distributing accounts within sections and groups of individual accounts, a hierarchical principle must be used:

the first digit of the account number reflects the account section;
the second and third digits reflect the account group, which groups accounts with homogeneous economic content;
the fourth digit indicates a specific accounting object.

Chapter 4. Features of Sections

Accounts of sections 1000 to 5000 are permanent accounts, and a statement of financial position for PSO/PO is prepared based on them. Accounts of sections 6000 to 9000 are temporary accounts, and their balances are transferred to account 5999 'Summary of income and expenses' at the end of the reporting period.
Accounts of Section 1000 'Current assets' are active accounts, reflecting current assets of PSO/PO with high liquidity. Balances on active accounts are debit, except for contra-accounts, which are passive and have credit balances.
Accounts of Section 2000 'Non-current assets' are active accounts, reflecting non-current and intangible assets held by PSO/PO, classified as 'less liquid assets'. Balances on these accounts are debit, except for contra-accounts, which are passive and have credit balances.
Accounts of Section 3000 'Short-term liabilities' are passive accounts, reflecting operational liabilities of PSO/PO with a maturity period up to 12 months. Balances on these accounts are credit, except for contra-accounts, which are active and have debit balances.
Accounts of Section 4000 'Long-term liabilities' are passive accounts, reflecting operational liabilities of PSO/PO with a maturity period exceeding 12 months. Balances on these accounts are credit, except for contra-accounts, which are active and have debit balances.
Accounts of Section 5000 'Equity' are passive accounts and reflect all funds belonging to the owners (members/shareholders) of PSO/PO. The retained earnings account may have a credit or debit balance.
Accounts of Section 6000 'Operating income' are passive accounts and reflect all income received by PSO/PO as a result of operational activities during the reporting period. Balances on income accounts are credit, except for contra-accounts, which are active and have debit balances.
Accounts of Section 7000 'Operating expenses' are active accounts. They reflect all expenses incurred by PSO/PO as a result of main/operational activities during the reporting period and are temporary accounts. Balances on expense accounts are debit, except for contra-accounts, which are passive and have credit balances.
Accounts of Section 8000 'General and administrative expenses' are active accounts. They reflect all expenses incurred during the reporting period that do not form part of the cost of inventories and are not directly related to the sale of finished products, goods, and services, and are temporary accounts. Balances on expense accounts are debit.
Accounts of Section 9000 'Non-operating income and expenses' are temporary accounts. They reflect income and expenses from non-operational (investment and financial) activities of PSO/PO. Income accounts are passive and have a credit balance, expense accounts are active and have a debit balance.
Accounts of Section 11000 'Off-balance sheet accounts' are intended to reflect operations of PSO/PO with conditional assets and liabilities subject to off-system accounting. Accounting on these accounts is conducted without applying the double-entry method. Off-balance sheet accounts do not correspond with each other and with other balance sheet accounts; they may be active and/or passive.

Chapter 5. Final Provisions

The head of PSO/PO is responsible for the compliance of the chart of accounts with the legislation of the Kyrgyz Republic and the requirements of this Regulation.
PSO/PO have the right to introduce additional groups of accounts into the chart of accounts. In this case, when submitting interim financial statements to the National Bank, additional information is provided about newly introduced accounts, indicating the name of the group, accounts included in this group, and their brief description.

Contacts
Public Reception: +996 (312) 61-04-86, +996 (312) 66-90-15, ext. +1257, +1256 Consumer Rights Protection Department: +996 (312) 66-90-15, ext. +1671, +1666 Report Corruption: +996 (312) 66-90-15, ext. +2120; +996 (312) 61-04-00 Auto-informer of Official Exchange Rates: +996 (312) 61-07-11 Numismatic Museum: +996 (312) 66-90-15, ext. +1232; +996 (312) 61-24-14 E-mail: mail@nbkr.kg Media Relations: press@nbkr.kg 720010, Kyrgyz Republic, Bishkek, Kiev Street, 189

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