Resolution of the Board of the National Bank

of the Kyrgyz Republic

dated 21 December 2016 No. 49\9

On the approval of the Regulation "On requirements for the preparation of financial statements and submission of information by non-banking financial and credit institutions carrying out activities in accordance with Islamic principles of banking and finance or having an "Islamic window"

In accordance with Articles 7 and 43 of the Law "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

• 1. To approve the Regulation "On requirements for the preparation of financial statements and submission of information by non-banking financial and credit institutions carrying out activities in accordance with Islamic principles of banking and finance or having an "Islamic window" (attached).

• 2. This resolution shall enter into force fifteen days after the date of official publication.

• 3. The Legal Department:

  • to publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

  • after official publication, to send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.

• 4. The Supervision Methodology and Licensing Department shall bring this resolution to the attention of operating microfinance organizations, credit unions, their unions (associations), OJSC "Financial Company of Credit Unions", NPO "Association of Islamic Finance", regional departments and the representative office of the National Bank of the Kyrgyz Republic in Batken Region.

• 5. Control over the execution of this resolution shall be assigned to the member of the Board of the National Bank of the Kyrgyz Republic T. Dzhusupov.

Chairman T. Abdygulov

Appendix
to the resolution of the Board of the National Bank of the Kyrgyz Republic dated 21 December 2016 No. 49/9

REGULATION

"On requirements for the preparation

of financial statements and submission of information by non-banking

financial and credit institutions carrying out

activities in accordance with Islamic principles of banking and finance or having an "Islamic window"

CHAPTER 1. GENERAL PROVISIONS

• 1. The Regulation has been developed in accordance with the Laws of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic", "On Credit Unions" and other normative legal acts of the Kyrgyz Republic.

• 2. This Regulation defines the composition, rules for the preparation and submission of financial statements by microfinance organizations (hereinafter - MFO) and credit unions carrying out activities in accordance with Islamic principles of banking and finance (hereinafter - NFKU), as well as MFOs having an "Islamic window".

• 3. The provisions of this Regulation apply to NFKUs taking into account the specifics of their activities and organizational and legal form determined by legislative and normative legal acts of the Kyrgyz Republic. NFKUs in conservation mode and temporary administration also submit financial statements in accordance with this Regulation.

• 4. The financial statements of an NFKU carrying out activities in accordance with Islamic principles of banking and finance represent a structured presentation of the financial position and results of activities carried out by it during the reporting period.

• 5. The financial statements of an NFKU carrying out activities in accordance with Islamic principles of banking and finance must objectively reflect its financial position and comply with the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (hereinafter - AAOIFI), and in the absence of certain standards, the NFKU uses IFRS standards provided that they do not contradict the Sharia standards approved by AAOIFI.

• 6. The purpose of the financial statements of an NFKU is:

  • to present information on the financial position, financial results of activities and cash flows of an NFKU, useful to a wide range of users in making their economic decisions;

  • to present the results of managing the resources entrusted to the management of an NFKU by presenting information on assets, liabilities, capital, income and expenses (including profits and losses) and cash flows.

• 7. Users of financial statements are investors, shareholders, founders, participants, creditors, borrowers, international financial organizations, tax authorities, the National Bank and other users.

CHAPTER 2. GENERAL REQUIREMENTS FOR THE PREPARATION OF FINANCIAL STATEMENTS

• 8. Financial statements consist of reporting forms that must be prepared according to the forms attached to this Regulation:

  • statement of financial position as of the last day of the reporting period (Form No. 1 according to Appendix 1 to this Regulation);

  • statement of profit and loss (Form No. 2 according to Appendix 2 to this Regulation);

  • statement of cash flows (Form No. 3 according to Appendix 3 to this Regulation);

  • statement of changes in equity structure (Form No. 4 according to Appendix 4 to this Regulation);

  • accounting policy and explanatory note (disclosures);

  • report on the sources of formation and use of cash fund funds (Form No. 5 according to Appendix 5 to this Regulation);

  • conclusion of the Sharia Council (Form No. 6 according to Appendix 6 to this Regulation).

The explanatory note (disclosures) to the financial report must be concise and clear, and must also have a cross-reference to the relevant items of the financial report, if necessary. The explanatory note (disclosures) attached to the financial statements is an integral part thereof.

The conclusion of the Sharia Council must contain information confirming that operations during the reporting period were carried out in accordance with the principles of Sharia.

• 9. The following information must be clearly identified in the financial statements and, if necessary for a proper understanding of the information presented, repeated:

  • the name of the reporting NFKU;

  • reporting date or period covered by the financial statements;

  • reporting currency;

  • units of measurement and level of precision used in presenting numbers in the financial statements.

• 10. When preparing financial statements, the management of the NFQU must assess the ability of the NFQU to continue its operations. Financial statements shall be prepared on the basis of the going concern assumption unless management has neither the intention nor the need to liquidate or significantly curtail the scale of the NFQU's operations. When management, in the course of forming an opinion, becomes aware of material uncertainties relating to events or conditions that may cast significant doubt on the ability of the NFQU to continue as a going concern, these uncertainties must be disclosed.

If the financial statements are not prepared on the basis of the going concern assumption, this fact must be disclosed, as well as the basis on which the statements have been prepared and the reason why the NFQU is not considered to be a going concern.

• 11. The NFQU must prepare financial statements, with the exception of the statement of cash flows, using the accrual method.

• 12. For financial reporting purposes, the reporting period for the NFQU is the period from 1 January to 31 December of the calendar year inclusive.

For an NFQU newly established before 1 October, the first reporting period is considered to be the period from the day of its state registration to 31 December inclusive.

For an NFQU established after 1 October, the first reporting period is considered to be the period from the day of its state registration to 31 December of the following year inclusive.

• 13. In exceptional cases where the reporting period of the NFQU is changed and financial statements are provided for a period longer or shorter than one year, the NFQU must disclose in addition to the period covered by the financial statements:

  • the reason for using a period other than a year;

  • the fact that comparative amounts for statements of comprehensive income, changes in equity, cash flows and the corresponding notes are not comparable.

• 14. Each material item in the financial statements of the NFQU is disclosed and presented separately in the financial statements. Immaterial items are grouped with amounts of a similar nature or purpose.

• 15. The content and forms of financial statements are applied consistently from one reporting period to another (the consistency principle).

For each numerical indicator of the financial statements, the indicators of the previous reporting year must be presented.

• 16. The classification and presentation of items in the financial statements must be retained from period to period, except in cases:

  • of a material change in the nature of the NFQU's operations or when an analysis of their presentation in the financial statements demonstrates that the changes will result in a more reliable presentation of events or transactions;

  • where changes in presentation are required by the regulatory legal acts of the National Bank.

• 17. If data for the period preceding the reporting period are not comparable with data for the reporting period, the former data shall be adjusted based on changes in the rules established by regulatory documents of the National Bank. Each adjustment shall be disclosed in the notes to the financial reporting forms, indicating its reasons. In the event that making an adjustment is impractical, the NFCCU shall disclose the reason for not making the adjustment, as well as the nature of the changes that would have occurred if the amounts had been adjusted.

• 18. In the financial reporting forms, for items for which no transactions have been carried out as of the date of preparation of the reporting, the numerical value "zero" shall be indicated. In the event that the NFCCU does not engage in carrying out a particular transaction indicated in the financial reporting forms, it shall not be included in the reporting.

• 19. The financial reporting of the NFCCU shall be prepared in the national currency of the Kyrgyz Republic, unless otherwise stipulated by international treaties ratified in the prescribed manner.

• 20. The financial reporting shall be signed by the head and the chief accountant of the NFCCU and also certified by the seal of the NFCCU.

• 21. Changes in the financial reporting not taken into account in previous periods, which are identified after receipt of the audit opinion and before approval of the annual report, shall be accounted for as adjustments of the current period.

• 22. The correction of errors in the financial reporting shall be confirmed by the signature of the persons indicated in paragraph 20 of this Regulation, indicating the date of correction.

• 23. When preparing financial reporting for the purpose of its more reliable presentation, the management of the NFCCU and the person responsible for preparing the financial reporting shall have the right to add and/or reduce items of the financial reporting forms after consultation with the external auditor, taking into account the requirements of this Regulation.

• 24. The management of the NFCCU is responsible for the preparation and submission of financial reports.

CHAPTER 3. PROCEDURE, DEADLINES FOR SUBMISSION AND PUBLICATION

OF FINANCIAL REPORTING OF THE NFCCU

• 25. After the conduct of an independent external audit, the NFCCU shall provide the National Bank with one copy of the financial reporting in the following forms: statement of financial position as of the last day of the reporting period (Form No. 1), statement of profit and loss (Form No. 2), statement of cash flows (Form No. 3), statement of changes in equity structure (Form No. 4), statement of sources of formation and use of cash funds of the card fund (Form No. 5), conclusion of the Shariah Board (Form No. 6).

The financial reporting shall be submitted to the National Bank together with a copy of the external auditor's opinion without changes, within 30 days from the moment of submission of the report by the external auditor to the NFCCU, but no later than 105 days from the end of the financial year.

• 26. MFIs, when conducting an external audit, shall publish the financial reporting with disclosure, consisting of the following forms: statement of financial position as of the day 31 December (Form No. 1), statement of profit and loss (Form No. 2), statement of cash flows (Form No. 3), statement of changes in equity structure (Form No. 4), statement of sources of formation and use of cash funds of the card fund (Form No. 5), conclusion of the Shariah Board (Form No. 6).

The publication of the financial reporting forms shall be carried out together with the audit opinion after completion of the audit and approval of the financial reporting in the mass media in the state and/or official languages no later than 30 April of the year following the reporting year.

MFIs shall select the mass media for the publication of the financial reporting forms together with the audit opinion in such a way as to ensure its wide distribution and accessibility to users. Information about the publication with an attached copy of the publication shall be submitted to the National Bank within 3 working days after publication.

• 27. In the event of an external audit, a credit union holding a license for the right to attract deposits shall publish the financial reporting consisting of the following forms: statement of financial position as of the day 31 December (Form No. 1), statement of profit and loss (Form No. 2), statement of cash flows (Form No. 3), statement of changes in equity structure (Form No. 4), statement of sources of formation and use of cash funds of the card fund (Form No. 5) conclusion of the Shariah Board (Form No. 6).

The publication of the financial reporting forms shall be carried out together with the audit opinion after completion of the audit and approval of the financial reporting in the mass media in the state and/or official languages no later than 30 April of the year following the reporting year. Information about the publication with an attached copy of the publication shall be submitted to the National Bank within 3 working days after publication.

• 28. In the event of a violation by the NFCCU of the procedure for submitting financial reporting, submission of unreliable reporting, as well as publication of reports without compliance with established requirements, the National Bank shall have the right to apply measures of influence to them in accordance with the current legislation.

CHAPTER 4. PROCEDURE AND DEADLINES FOR SUBMISSION OF OTHER TYPES OF REPORTING BY NFCCUs CARRYING OUT ACTIVITIES IN ACCORDANCE WITH ISLAMIC PRINCIPLES OF BANKING AND FINANCE

• 29. Quarterly, the NFCCU shall, within 30 days from the moment of the end of the quarter, post on the information board the statement of financial position as of the last day of the reporting quarter (Form No. 1) and the statement of profit and loss (Form No. 2).

• 30. The National Bank shall have the right to request within a year any information relating to the activities of the NFCCU.

CHAPTER 5. STATEMENT OF FINANCIAL POSITION

• 31. In the Statement of Financial Position, assets and liabilities shall be grouped by their nature in an order reflecting their relative liquidity (by degree of decreasing liquidity or maturity).

• 32. The Statement of Financial Position shall include the assets of the NFCCU, its liabilities, funds in investment accounts and equity.

• 33. An asset item shall not be offset against a liability item in the statement of financial position, and vice versa, except where this is required or permitted by AAOIFI standards.

• 34. Relationships with the National Bank, other IIFS, other money market partners and creditors, borrowers shall be separately reflected in the statement of financial position in order to give a correct representation of their interdependence.

• 35. The title of the "Statement of Financial Position" form must be stated as "Statement of Financial Position as at "_" _____________ 20 (inclusive)". In this case, the date at the end of the month, quarter, year is indicated.

• 36. Subtotals for assets, liabilities, investment accounts and capital must be presented in the statement of financial position.

• 37. Results on investment accounts and their equivalents must be presented in the statement of financial position as a separate item between the liabilities and capital of the IIFS.

CHAPTER 6. STATEMENT OF PROFIT OR LOSS

• 38. In the Statement of Profit or Loss, income and expenses arising from the activities of the IIFS must be grouped by their nature and must reflect the main types of income and expenses.

• 39. Income and expense items shall not be offset, except where:

  • 1) AAOIFI standards permit this;

  • 2) or profits, losses and related expenses arising from the same or similar events are not material. Such amounts must be aggregated and presented in the statement of profit or loss.

• 40. The IIFS must present in the statement of profit or loss or in the notes (disclosures) to the financial statements an analysis of income and expenses using a classification based on the nature of the Company's income and expenses.

• 41. The IIFS must show in the statement of profit or loss or in the notes (disclosures) to the financial statements the amount of dividends per share declared or proposed for the period covered by the financial statements.

• 42. The title of the "Statement of Profit or Loss" form must be stated as "Statement of Profit or Loss as at "_" ______________ 20 (inclusive)". In this case, the date at the end of the month, quarter, year is indicated.

• 43. The statement of profit or loss must present information with separate disclosures of income on capital, costs, profits and losses received by the IIFS and holders of investment accounts:

  • 1) income received from realization and profit from investments (financing);

  • 2) costs and losses from investments (financing);

  • 3) net profit (loss) from investments (financing);

  • 4) the share of holders of investment accounts in the profit (loss) from investments (financing) in the profit of the IIFS, as mudarib;

  • 5) the share of the IIFS in the profit (loss) from investments (financing);

  • 6) the share of the IIFS in income from unrestricted investments as mudarib;

  • 7) the share of the IIFS in profit from restricted investments as mudarib;

  • 8) the established remuneration for the IIFS as an investment agent, if any;

  • 9) income (expenses) received as a result of transactions that do not comply with Sharia standards, if any;

  • 10) other income received from sales, costs, profit and losses;

  • 11) general and administrative costs;

  • 12) net profit (loss) before taxes;

  • 13) taxes (must be presented separately);

  • 14) net profit (loss).

CHAPTER 7. STATEMENT OF CASH FLOWS

• 44. In the statement of cash flows, the IFI must present data on the movement of cash and cash equivalents for the reporting period, classifying them by operating, investing or financing activities.

• 45. The statement of cash flows must present the net increase (decrease) in cash and cash equivalents at the beginning and at the end of the period.

• 46. The statement of cash flows must present transactions and other transfers of amounts that do not require payment or do not entail the receipt of cash or cash equivalents (for example, dividends intended for distribution among shareholders or the acquisition of assets in exchange for a share in the IFI's shares).

• 47. The statement of cash flows must be accompanied by the IFI's Policy regarding the components of cash and cash equivalents used as the basis for preparing the statement of cash flows.

CHAPTER 8. STATEMENT OF CHANGES IN CAPITAL STRUCTURE

• 48. The IFI must present a statement of changes in capital structure reflecting:

  • 1) paid-in capital, reserves created in accordance with the requirements of regulatory legal acts of the Kyrgyz Republic and reserves created at the discretion of the IFI separately, and retained earnings as of the beginning date of the reporting period with separate presentation of the amount of profit arising from the revaluation of assets and liabilities in monetary terms, where possible;

  • 2) capital transactions and distributions made by the IFI during the reporting period;

  • 3) net profit (loss) for the reporting period;

  • 4) increase (decrease) in reserves created by the IFI during the reporting period in accordance with the requirements of the legislation of the Kyrgyz Republic.

49. Information on the IFI's retained earnings must include the following:

• 1) retained earnings at the beginning of the period with separate disclosure of the amount arising from the revaluation of assets and liabilities in monetary terms, where applicable;

• 2) net profit (loss) for the reporting period;

• 3) contributions to reserves created by the IFI for the reporting period in accordance with the requirements of the legislation of the Kyrgyz Republic;

• 4) amounts due to shareholders/participants during the reporting period;

• 5) retained earnings at the end of the reporting period with separate disclosure of the amount arising from the revaluation of assets and liabilities in monetary terms, where possible.

CHAPTER 9. ACCOUNTING POLICY AND EXPLANATORY NOTE (DISCLOSURES)

50. The accounting policy in the explanatory note (disclosures) to the IFI's financial statements must provide for the following:

• 1) definition of accounting policy, which includes the accounting principles, bases, rules and methods that have been adopted by the IFI for the preparation and publication of financial statements;

• 2) a clear and concise description of the significant accounting policies used in the preparation and publication of financial statements;

• 3) methods of presenting the main principles of accounting in the note to the financial statements;

• 4) adoption of a new accounting policy due to an obvious difference in the state of certain transactions and events compared to simple transactions and events in the past;

• 5) adoption of a new accounting policy due to transactions or events that arise for the first time or occurred in the past but were immaterial;

• 6) changes in the classification of items of the financial statements of the current period compared to the classification of items of the financial statements of the previous period;

• 7) presentation of the methods used by the IFI to distribute profit (loss) from investments (financing) between the holders of investment accounts and the IFI as a mudarib or as an investment manager participating or not participating in investments with its own funds.

51. The accounting policy must present changes, including changes that do not affect financial indicators in the current or previous periods or where such an effect is possible in future periods.

52. When changes are made to the accounting policy, the new policy is applied retrospectively, i.e. the IFI must apply the new accounting policy to the comparative information for prior periods by preparing financial statements for the last periods, to the extent practicable.

53. The explanatory note (disclosures) to the IFI's financial statements must disclose information that is not presented in the published financial statements:

• 1) the name of the IFI;

• 2) the country of registration of the IFI;

• 3) the date of formation and the legal organizational form of the IFI;

• 4) the location of the head office of the IFI and its subsidiaries in each country where the institution operates;

• 5) the nature of the IFI's activities and the main banking services provided for by the charter;

• 6) the names of the IFI's subsidiaries whose financial statements are not consolidated with the IFI's statements, their countries of registration, the IFI's share of participation in each subsidiary, the nature of activities and the reasons for excluding their financial statements from the IFI's consolidated financial statements;

• 7) the name of the IFI's management company, as well as the name of its branches, if any;

• 8) the role of the Sharia Council in the IFI's activities and its powers;

• 9) the taxation rules in the country of registration and in other countries where the IFI has branches. If the IFI enjoys tax benefits in the country of registration and in other countries, it is necessary to indicate the period of tax benefits and the remaining period of validity of the tax benefits.

54. The explanatory note (disclosures) to the financial statements must be presented in a systematic form. For each item of the profit and loss statement, the statement of financial position according to the accounting balance sheet, and the cash flow statement, cross-references must be provided to any information relating to it.

55. An error in the financial statements for a previous period, if any, must be corrected by re-forming the financial statements for all previous periods that were affected by the error. Retained earnings at the beginning of the first period must be adjusted to reflect the cumulative effect of the correction of the error on the periods that are not presented but were affected by the error.

56. Disclosure of additional information may be carried out using diagrams, analytical tables, graphs, and extracts of data for the previous and reporting periods.

57. In the notes to the financial statements of the IFI, the following information must be reflected:

• 1) about the officials of the IFI as defined by the laws of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic", "On Credit Unions";

• 2) about the relatives of the officials of the IFI;

• 3) about any individuals or legal entities that directly or indirectly own or manage the IFI;

• 4) about subsidiaries and/or dependent companies and other branches of the IFI;

• 5) about the sources of formation and use of the funds of the zakat fund and the qard fund created in accordance with AAOIFI standards during the reporting period, if any. The method of calculating zakat must be carried out in accordance with AAOIFI standards.

CHAPTER 10. REPORTING OF MFIs HAVING AN "ISLAMIC WINDOW"

58. MFIs having an "Islamic window" must form and present additional (separate) financial statements on activities carried out in accordance with Islamic principles of banking and financing, in the form of an appendix to the company's consolidated financial statements.

59. The accounting policy of an MFI having an "Islamic window", approved by its Board of Directors and the Shariah Council, must include the Procedure for forming the financial statements of the MFI's "Islamic window".

60. The additional (separate) financial statements of MFIs having an "Islamic window", presented on activities carried out in accordance with Islamic principles of banking and financing, consist of the following financial statements:

• statement of financial position (Form No. 1 according to Appendix 1 to this Regulation);

• profit and loss statement (Form No. 2 according to Appendix 2 to this Regulation);

• accounting policy and explanatory note (disclosures) to the financial statements;

• statement on the sources of formation and use of funds of the qard fund (Form No. 5 according to Appendix 5 to this Regulation);

• conclusion of the Shariah Council (Form No. 6 according to Appendix 6 to this Regulation);

The explanatory note (disclosures) to the financial statement must be concise and understandable, and also have a cross-reference to the relevant items of the financial statement, if necessary. The explanatory note (disclosure) attached to the financial statements is an integral part thereof.

The conclusion of the Shariah Council must contain information confirming that operations were carried out during the reporting period in accordance with the principles of Shariah.

Appendix 1

to the Regulation "On requirements for the formation of financial statements and the submission of information by NFIs carrying out activities in accordance with the principles of Islamic banking and financing or having an 'Islamic window'

Form No. 1

Statement of Financial Position as of __________ 20___

___________________________________________________________________________ (name of the non-banking financial and credit institution and its location)

thousand som

Name of line item

Total

Foreign currency

A. Assets

1.

Cash and cash equivalents

including in foreign currency

2.

Account with the National Bank

3.

Settlement accounts with other banks and financial institutions

4.

Accounts with other banks and financial institutions:

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

c) under a qard hasan contract

5.

Securities

6.

Financing provided to banks and financial and credit institutions:

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

c) under a sharika/musharaka contract

d) under a murabaha contract

e) under an ijara/ijara muntahia bi al-tamleek contract

f) under a salam contract

g) under a qard hasan contract

7.

Financing provided to other clients

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

c) under a sharika/musharaka contract

d) under a murabaha contract

e) under an ijara/ijara muntahia bi al-tamleek contract

f) under a salam contract

g) under a qard hasan contract

8.

MINUS: Special RPPU

9.

Net financing (item 6 + item 7 - 8)

10.

Assets/inventory for subsequent transfer to clients:

a) real estate

b) movable property

11.

Fixed assets, including:

a) land and buildings

b) other fixed assets

12.

Other property

a) client's real estate accepted in repayment of financing received

b) client's other property accepted in repayment of financing provided

13.

Capital investments in non-consolidated companies

a) banks and financial and credit institutions

b) other financial institutions

c) non-financial institutions

14.

Other assets

15.

TOTAL: ASSETS

B. Liabilities

16.

Term deposits of legal entities

a) under a limited mudaraba contract

b) under an unlimited mudaraba contract

17.

Term deposits of individuals

a) under a limited mudaraba contract

b) under an unlimited mudaraba contract

18.

Financing received:

a) from banks of the KR

b) from other FCUs of the KR

c) from international financial organizations and donors

d) from international FCUs

e) from state authorities

19.

Funds borrowed by the MFI from legal entities and founders (shareholders)

a) financing provided to the MFI by founders (shareholders) – individuals

b) financing provided to the MFI by founders (shareholders) – legal entities

20.

Contingent grants

21.

including in foreign currency

22.

Other liabilities

23.

TOTAL: LIABILITIES

C. Capital

24.

Share capital:

a) common shares (fully paid-up charter capital)

b) preferred shares

c) capital invested in excess of par value

d) additional capital contributed by individuals and legal entities

e) retained earnings (losses):

e1) earnings (losses) of previous periods

e2) earnings (losses) of the current year

f) reserves for future needs

25.

General reserves, including:

a) revaluation reserve for fixed assets

b) revaluation reserve for securities

c) general RPPU for financing

d) general RPPU for other assets

e) other general reserves

26.

Profit equalization reserve (RVP)

27.

Investment risk coverage reserve

28.

Capital investments of unconsolidated companies

29.

TOTAL: CAPITAL

30.

TOTAL CAPITAL AND LIABILITIES

Chairman of the Management Board (Head)

---

(Full name, signature)

Chief Accountant

---

(Full name, signature)

Appendix 2

to the Regulation "On requirements for the preparation of financial statements and submission of information by NFIs carrying out activities in accordance with the principles of Islamic banking and financing or having an 'Islamic window'

Form No. 2

Statement of profit and loss for _________ 20___

___________________________________________________________________________ (name of the non-bank financial and credit institution and its location)

thousand som

No.

Name of line item

Reporting period 20XX

Previous period 20YY

A. Income received from operations

1.

Income on funds placed in accounts in commercial banks

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

c) under a qard hasan contract

2.

Income on securities

3.

Income received from financing provided to financial and credit institutions, including:

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

c) under a sharika/musharaka contract

d) under a murabaha contract

e) under an ijara/ijara muntahia bi al-tamleek contract

f) under a salam contract

4.

Income received from financing provided to other clients, including:

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

c) under a sharika/musharaka contract

d) under a murabaha contract

e) under an ijara/ijara muntahia bi al-tamleek contract

f) under a salam contract

5.

Other income received from financing operations

6.

Total

B. Expenses incurred from operations

7.

Expenses on term accounts of legal entities

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

8.

Expenses on term accounts of individuals

a) under a restricted mudaraba contract

b) under an unrestricted mudaraba contract

9.

Expenses on financing received from banks

10.

Expenses on financing received from other financial institutions

11.

Expenses on financing received from international financial institutions (other sources of financing)

12.

Other expenses

13.

Total

14.

Net income from operations

15.

RPPU

16.

Net income after allocations to RPPU

B. Other income from operations

17.

Commission and service fees

18.

Income/losses from exchange rate differences

19.

Income received from agency banking

20.

Income/dividends from investments in capital and shares, including in subsidiary and associated companies

21.

Other income

22.

Total

C. Other expenses from operations

23.

Expenses for payment of specialist services and banking services

24.

Other expenses

25.

Total

D. Operating and administrative expenses and expenses for zakat and charity

26.

Salaries and other personnel expenses

a) salaries and bonuses

b) other payments and subsidies

c) payments to the Social Fund

27.

Fees to members of the Board of Directors

28.

Other expenses for fixed assets, including property tax

a) rent

b) utilities

c) depreciation expenses

d) other expenses

e) property tax

29.

Taxes

30.

Takaful

31.

Other operating and administrative expenses

32.

Total: operating expenses

33.

Total: operating income (loss)

34.

Reserves for coverage of other possible losses and expenses (not from financing operations)

35.

Net operating income (loss)

36.

Zakat and charity expenses

37.

Income tax

38.

Net profit (loss)

Chairman of the Management Board (Head)

---

(full name, signature)
Chief Accountant

---

(full name, signature)

Appendix 3

to the Regulation "On requirements for the preparation of financial statements and submission of information by NFIs carrying out activities in accordance with the principles of Islamic banking and financing or having an 'Islamic window'"

Form No. 3

Cash Flow Statement as of _________ 20___

___________________________________________________________________________ (name of the non-bank financial and credit institution and its location)

thousand som

No.

Name of line item

Reporting period 20XX

Previous period 20YY

Cash flows from operating activities:

1

Markup received from IFS operations

2

Share of profit paid on funds raised under IFS

3

Income from services and commissions received

4

Net payments from foreign currency transactions

5

Net profit from foreign currency transactions

6

Net realized income from operations with financial instruments measured at fair value, changes in which are recognized in profit or loss

7

Expenses for services and commissions paid

8

Other income

9

Salaries and bonuses to employees

10

Administrative expenses

Changes in operating assets and liabilities

11

Funds provided to customers under IFS

12

Accounts receivable

13

Other assets

14

Funds raised under IFS

15

Other liabilities

16

Net cash inflow from operating activities before income tax

17

Income tax paid

18

Net cash inflow from operating activities

Cash flows from investing activities:

19

Acquisition of property, plant and equipment and intangible assets

20

Disposal of property, plant and equipment and intangible assets

21

Net cash inflow from investing activities

Cash flows from financing activities:

22

Dividends paid

23

Receipt of funds raised under the IPF

24

Repayment of funds raised under the IPF

25

Net cash inflow/outflow from financing activities

26

Effect of exchange rate changes on cash and cash equivalents

27

Net increase (decrease) in cash and cash equivalents

28

Cash and cash equivalents at the beginning of the year

29

Cash and cash equivalents at the end of the year

Chairman of the Management Board (Head)

---

(full name, signature)
Chief Accountant

---

(full name, signature)

Appendix 4

to the Regulation "On requirements for the preparation of financial statements and submission of information by NFICs conducting activities in accordance with the principles of Islamic banking and financing or having an 'Islamic window'

Form No. 4

Statement of Changes in Equity Structure as of _________ 20___

___________________________________________________________________________ (name of the non-bank financial and credit institution and its location)

thousand som

No.

Name of line item

Reporting period 20XX

Previous period 20YY

Share capital

1

Balance at the beginning of the reporting period

2

Increase during the reporting period

3

Decrease during the reporting period

4

Balance at the end of the reporting period

5

Capital contributed in excess of par value

6

Balance at the beginning of the reporting period

7

Capital surplus from share issuance

8

Other changes

9

Balance at the end of the reporting period

Retained earnings

10

Balance at the beginning of the reporting period

11

Profit (losses) of the last reporting period

12

Dividends declared based on the results of the last reporting year in the form of cash

13

Other changes

14

Balance at the end of the reporting period

15

Reserve for future needs

16

Balance at the beginning of the reporting period

17

Other movements in the reserve for future needs

18

Balance at the end of the reporting period

Asset revaluation reserves

19

Balance at the beginning of the reporting period

20

Results of revaluation of fixed assets in the reporting period

21

Other movements in the fixed asset revaluation reserve

22

Results of revaluation of securities in the reporting period

23

Balance at the end of the reporting period

24

Total: equity

Chairman of the Board (Head)

---

(Full name, signature)
Chief Accountant

---

(Full name, signature)

Appendix 5

to the Regulation "On requirements for the preparation of financial statements and submission of information by NFCCUs operating in accordance with the principles of Islamic banking and financing or having an 'Islamic window'

Form No. 5

Report on the sources of formation and use of funds of the qard fund

as of _______20

_________________________________________________________________________ (name of the non-bank financial and credit institution and its location)

Name

Reporting period 20XX

Previous period 20YY

Opening balance

1

Qard hasan

2

Cash available for providing qard hasan

Sources of qard fund funds

3

Allocation of funds from current accounts

4

Allocation of income not complying with Sharia standards

5

Funds received outside the activities of the NFCCU

6

Total amount formed from sources of funds during the year

Use of qard fund funds

7

Qard hasan for educational purposes

8

Qard hasan for small business

9

Settlements on current accounts

10

Total amount of funds used during the year

Balance at the end of the year

11

Qard hasan

12

Cash available for providing qard hasan

Chairman of the Board (Head)

---

(Full name, signature)
Chief Accountant

---

(Full name, signature)

Appendix 6

to the Regulation "On requirements for the formation of financial statements and the submission of information by NFICUs carrying out activities in accordance with Islamic principles of banking and financing or having an 'Islamic window'"

Form No. 6

Conclusion of the Shariat Council

(sample)

We, (surname, first name, patronymic), … (surname, first name, patronymic), …., being members of the Shariat Council/providing services under the company's contract, on behalf of the members of the Shariat Council, hereby confirm that the operations of the company carrying out operations in accordance with the principles of Islamic financing in ______ year were carried out in accordance with the principles of sharia.

On behalf of the Shariat Council:

(Full name, signature) _________________________ (Full name, signature) _________________________ ………………………… ………………………………… Bishkek (date)