Integrites has the honor to bring to your attention the following information, which we hope may be useful in your company activities.
The Board of the National Bank of the Republic of Kazakhstan has issued a decree (hereinafter the “Decree”) approving the Rules for determining the cost of lien and other guarantees (hereinafter the “Rules”).
The rules establish the way and order for determining the cost of an object of the lien or other guarantees. Herein the Rules are applicable by the second-tier banks (except for the banks, determined by provisions of the Decree) and other organizations specializing in certain types of banking operations, which consider the cost of lien and other guarantees while setting the reserves in compliance with the International Financial Reporting Standards (hereinafter the “IFRS”) and the legislation of the Republic of Kazakhstan on “Accounting and financial reporting (hereinafter the “Law”).
In addition, the application of provisions of the Decree is differentiated and is applicable for relations executed on dates, determined by the Decree.
The decree also provides for applicable value for an object of the lien for year 2013 provided that the given value has to comply with a number of conditions.
The decree also outlines the order for setting the reserves in compliance with the IFRS and the Law for year 2013.
We hope that the above information will be useful for you.
For additional information, please contact our firm.
We will be happy to assist.