Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 195 of July 26, 2013, Approving the Financial Reporting Standard "Accounting and Disclosure of Information on Pension Asset Transactions"

REPUBLIC OF KAZAKHSTAN NATIONAL BANK STATE-OWNED ENTERPRISE		STATE-OWNED ENTERPRISE NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN
RESOLUTION OF THE BOARD		RESOLUTION OF THE BOARD
July 26, 2013		No. 195
Almaty city		Almaty city

Approving

Financial Reporting Standard "Accounting and Disclosure of Information on Pension Asset Transactions"

In accordance with subparagraph 1) of paragraph 6 of Article 20 of the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting", subparagraph 13) of the fourth paragraph of part two of paragraph 19 of the Regulation on the National Bank of the Republic of Kazakhstan, approved by the Decree of the President of the Republic of Kazakhstan dated December 31, 2003 No. 1271 "On Approval of the Regulation and Structure of the National Bank of the Republic of Kazakhstan", the Board of the National Bank of the Republic of Kazakhstan RESOLVES:

Footnote. The preamble is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 19.12.2022 No. 122 (enters into force on January 1, 2023); as amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 24.12.2025 No. 105 (enters into force on January 1, 2026).

1. Approve the attached Financial Reporting Standard "Accounting and Disclosure of Information on Pension Asset Transactions".

2. This resolution enters into force upon the expiration of ten calendar days after the date of its first official publication.

Chairman of the National Bank	G. Martchenko

"AGREED"

Ministry of Finance
Republic of Kazakhstan
Minister B. Zhamishev

"29" August 2013

Approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated July 26, 2013 No. 195

Financial Reporting Standard

"Accounting and Disclosure of Information on Pension Asset Transactions"

1. Objective and Scope

1. This Financial Reporting Standard "Accounting and Disclosure of Information on Pension Asset Transactions" (hereinafter – the Standard) is developed in accordance with subparagraph 1) of paragraph 6 of Article 20 of the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting", subparagraph 13) of the fourth paragraph of part two of paragraph 19 of the Regulation on the National Bank of the Republic of Kazakhstan, approved by the Decree of the President of the Republic of Kazakhstan dated December 31, 2003 No. 1271 "On Approval of the Regulation and Structure of the National Bank of the Republic of Kazakhstan", is intended for accounting for pension assets and preparing financial reporting regarding pension assets of the Unified Accumulative Pension Fund and voluntary accumulative pension funds (hereinafter – the Fund).

Footnote. Paragraph 1 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 19.12.2022 No. 122 (enters into force on January 1, 2023); as amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 24.12.2025 No. 105 (enters into force on January 1, 2026).

1. The objective of the Standard is to define the features of accounting for pension assets and the presentation of information regarding pension assets to be disclosed in the Fund's financial reporting.
2. Matters not regulated by the Standard are governed by the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" and International Financial Reporting Standards (hereinafter – IFRS).

Footnote. Paragraph 3 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 19.12.2022 No. 122 (enters into force on January 1, 2023).

1. For accounting for and preparing the Fund's financial reporting on its own assets, IFRS are applied by the Fund.

2. Terms Used in the Standard

1. For the purposes of the Standard, terms provided for by the legislation of the Republic of Kazakhstan on accounting and financial reporting and IFRS are used.

3. Accounting for Pension Assets

Paragraph 1. Accounting for Pension Assets

6. Accounting for pension assets, including transactions for receiving pension contributions and making pension payments, is carried out in accordance with the Instruction on Accounting for Transactions with Pension Assets carried out by the Unified Accumulative Pension Fund and voluntary accumulative pension funds, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated July 1, 2011 No. 69 "On Approval of the Instruction on Accounting for Transactions with Pension Assets, Target Assets, and Target Accumulations carried out by the Unified Accumulative Pension Fund and voluntary accumulative pension funds" (registered in the Registry of State Registration of Normative Legal Acts under No. 7118).

Footnote. Paragraph 6 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 27.11.2023 No. 87 (enters into force on January 1, 2024).

Paragraph 2. Initial Recognition of Financial Assets

7. Deleted by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 26.02.2014 No. 30 (enters into force upon the expiration of ten calendar days after the date of its first official publication).

7-1. The Fund classifies financial assets into the following categories:

1) measured at amortized cost;

2) measured at fair value.

The allocation of the Fund's financial assets into one of the two categories provided for in the first part of this paragraph is carried out in accordance with the Rules for Accounting and Valuation of Pension Assets, approved by the Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated June 26, 2023 No. 58 "On Approval of the Rules for Accounting and Valuation of Pension Assets" (registered in the Registry of State Registration of Normative Legal Acts under No. 32997) (hereinafter – Valuation Rules).

Footnote. The Standard is supplemented by paragraph 7-1 in accordance with the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 26.02.2014 No. 30 (enters into force upon the expiration of ten calendar days after the date of its first official publication); paragraph 7-1 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 27.11.2023 No. 87 (enters into force upon the expiration of ten calendar days after the date of its first official publication).

8. Transactions for the purchase and sale of financial assets, except for transactions with derivative financial assets, are accounted for using the settlement date method.

The settlement date is the date on which the asset is delivered to the organization or by the organization.

Accounting on the settlement date provides for the following:

1) recognition of the asset on the day it is received by the organization;

2) derecognition of the asset and recognition of profit or loss from disposal on the day it is delivered by the organization.

The calculation of income or loss from the disposal of a financial asset is carried out using the FIFO (First-In, First-Out) method (hereinafter – FIFO method).

The application of the FIFO method means that assets acquired first will be sold first.

Footnote. Paragraph 8 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 22.11.2021 No. 100 (enters into force on January 1, 2022).

1. Financial assets measured at amortized cost upon initial recognition are measured at fair value, which is the transaction price, including transaction costs directly attributable to the acquisition or issuance of that financial asset.

Financial assets measured at fair value upon initial recognition are measured at fair value, which is the transaction price, excluding transaction costs directly attributable to the acquisition or issuance of that financial asset.

Transaction costs directly attributable to the acquisition or issuance of a financial asset measured at fair value are recognized as part of income or expenses.

Initial recognition of financial assets is carried out at fair value in cases provided for by International Financial Reporting Standard (IFRS) 13 "Fair Value Measurement", as well as in cases where the transaction price is not the fair value of the asset.

Income or loss from the difference between the transaction price and the fair value of the financial asset arising upon initial recognition of the financial asset is recognized as part of income or expenses.

Paragraph 3. Subsequent Accounting for Financial Assets

1. Subsequent accounting for financial assets classified in the category "measured at amortized cost" is carried out at amortized cost, which is the amount at which financial assets are measured upon initial recognition, less any principal repayments, reduced or increased by the cumulative amortization using the effective interest method of the difference between the initial amount and the maturity amount, and less any reduction for impairment losses using the allowance (provision) account for possible losses from the depreciation of the financial asset.
2. Discounts or premiums on financial assets are amortized using the effective interest rate method.

Footnote. Paragraph 11 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 26.02.2014 No. 30 (enters into force upon the expiration of ten calendar days after the date of its first official publication).

1. Accrual of income or expense in the form of remuneration is carried out on a daily basis.

Amortization of discounts or premiums on financial assets measured at amortized cost and at fair value is carried out on a daily basis.

The amount of impairment of financial assets accounted for in the category "measured at amortized cost" is determined in accordance with the Valuation Rules.

Footnote. Paragraph 12 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 29.01.2018 No. 10 (enters into force upon the expiration of ten calendar days after the date of its first official publication).

1. Accounting for financial assets classified in the category "measured at fair value" is carried out at fair value. Revaluation of financial assets measured at fair value is carried out in accordance with the Valuation Rules.

The fair value of a financial asset and/or sources of information on the fair value of traded financial assets accounted for in the category "measured at fair value" are determined in accordance with the Valuation Rules.

In the Fund's accounting, assets located in investment management by a foreign organization carrying out investment portfolio management activities in accordance with the legislation of a foreign country are reflected as a total amount for each foreign manager without detailing by each financial instrument.

Revaluation of financial assets measured at amortized cost is not performed.

Footnote. Paragraph 13 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 29.01.2018 No. 10 (enters into force upon the expiration of ten calendar days after the date of its first official publication).

1. Affined precious metals are accounted for at fair value determined in accordance with the Valuation Rules.
2. Accounting for derivative financial instruments is carried out at fair value determined in accordance with the Valuation Rules.
3. Financial instruments denominated in foreign currency are revalued daily at the market exchange rate determined in the manner provided for by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated January 25, 2013 No. 15 and the Order of the Minister of Finance of the Republic of Kazakhstan dated February 22, 2013 No. 99 "On Establishing the Procedure for Determining and Applying the Market Exchange Rate" (registered in the Registry of State Registration of Normative Legal Acts under No. 8378).

Positive and negative exchange rate differences on financial instruments are recognized as part of income or expenses.

1. When selling financial assets from the category "measured at amortized cost", no prior reclassification of these financial assets into the category "measured at fair value" is performed.

Paragraph 4. Reclassification of Financial Assets

1. Reclassification of financial assets may be carried out both from the category of financial assets measured at amortized cost and from the category of financial assets measured at fair value, except for the case provided for in paragraph 17 of the Standard.

Paragraph 5. Accounting for Hedging Transactions

1. Accounting for and reflecting hedging transactions, as well as income and/or expenses therefrom, in the Fund's financial reporting is carried out in accordance with IFRS.
2. Accounting for hedging transactions is carried out as follows:
3. income or loss from the revaluation of the hedging instrument at fair value is reflected in accounting as income or expenses;
4. the carrying amount of the hedged item is adjusted for income or loss attributable to the hedged risk of the hedged item, such income or loss is reflected in accounting as income or expenses.
5. When accounting for hedging transactions, the results of the offsetting of changes in the fair value of the hedging instrument and the hedged item are recognized as part of income or expenses in the financial reporting.

When preparing financial reporting, income and expenses on hedging instruments are reflected on the line item of the income statement where income and expenses from the hedged item are presented. Income and expenses related to the ineffective part of the hedging transaction are reflected on the lines of other income and expenses of the income statement.

Paragraph 6. Derecognition and Recovery of Financial Assets

Footnote. The heading of Paragraph 6 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 13.09.2019 No. 155 (enters into force upon the expiration of ten calendar days after the date of its first official publication).

1. The Fund derecognizes a financial asset in the following cases:
2. expiration of the contractual rights to cash flows from that financial asset;
3. transfer of contractual rights to receive cash flows from the financial asset, in case the transfer meets the requirements of IFRS;
4. for financial assets measured at amortized cost, after 180 (one hundred eighty) days have passed after the creation of 100 (one hundred) percent of the reserve (provision) for possible losses from the depreciation of the financial asset;
5. for financial assets measured at fair value, after 180 (one hundred eighty) days have passed after the implementation of 100 (one hundred) percent reduction in value in cases provided for in the Valuation Rules.
6. Cash flow receipts to the Fund from a financial asset after the derecognition of that financial asset by the Fund are recognized in the Fund's accounting as income.

If the recognition of a financial asset was terminated due to reserves (provisions) for possible losses from the depreciation of the financial asset, the receipt of money from that financial asset is charged to income from the recovery of reserves (provisions) for possible losses from the depreciation of the financial asset.

The recovery of financial assets measured at fair value, whose recognition was terminated, is carried out from income based on an independent valuation conducted in accordance with the requirements of the Valuation Rules.

The recovery of financial assets measured at amortized cost, whose recognition was terminated due to reserves (provisions) for possible losses from the depreciation of the financial asset, is carried out from income from the recovery of reserves (provisions) for possible losses from the depreciation of the financial asset based on an independent valuation conducted in accordance with the requirements of the Valuation Rules.

Footnote. Paragraph 23 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 13.09.2019 No. 155 (enters into force upon the expiration of ten calendar days after the date of its first official publication).

Paragraph 7. Financial Reporting

24. The Fund's financial reporting on pension assets within the territory of the Republic of Kazakhstan is presented in the national currency of the Republic of Kazakhstan.

The Fund's annual financial reporting on pension assets includes data for the current year and comparative data for at least the previous year.

The Fund's financial reporting on pension assets is prepared separately from the financial reporting on the Fund's own assets.

Annual financial reporting prepared on pension assets consists of the statement of net pension assets formed from mandatory pension contributions, mandatory professional pension contributions, and voluntary pension contributions; the statement of net pension assets formed from mandatory employer pension contributions; the statement of changes in net pension assets formed from mandatory pension contributions, mandatory professional pension contributions, and voluntary pension contributions; the statement of changes in net pension assets formed from mandatory employer pension contributions; and the explanatory note.

The statement of net pension assets formed from mandatory pension contributions, mandatory professional pension contributions, and voluntary pension contributions, and the statement of net pension assets formed from mandatory employer pension contributions, disclose information on assets and liabilities regarding pension assets.

The explanatory note contains information supplementing the data of the statement of net pension assets formed from mandatory pension contributions, mandatory professional pension contributions, and voluntary pension contributions; the statement of net pension assets formed from mandatory employer pension contributions; the statement of changes in net pension assets formed from mandatory pension contributions, mandatory professional pension contributions, and voluntary pension contributions; and the statement of changes in net pension assets formed from mandatory employer pension contributions.

The explanatory note is prepared in the form of notes to the annual financial reporting and includes descriptions or detailed breakdowns of accounting items disclosed in the Fund's financial reporting, as well as information on accounting items not subject to recognition in the Fund's financial reporting.

The explanatory note discloses information on the hedging instrument and the related hedged item, the nature of the hedged risk, as well as an assessment of the effectiveness of the hedging instrument.

When disclosing information on financial instruments in the annual financial reporting, the determination of the fair value of financial instruments is carried out in accordance with the Valuation Rules.

Footnote. Paragraph 24 is amended by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated 29.01.2018 No. 10 (enters into force upon the expiration of ten calendar days after the date of its first official publication); dated 27.11.2023 No. 87 (enters into force on January 1, 2024).