Translation. Region: Russian Federal
Source: Central Bank of Russia (2) –
Updated: 30.06.2025.
Bank of Russia Instruction No. 6379-U of 23.03.2023 “On the procedure for reflecting certain assets and liabilities in foreign currency in accounting accounts by credit institutions under restrictive measures” (hereinafter referred to as Instruction No. 6379-U) establishes the specifics of reflecting non-refundable blocked assets denominated in foreign currency in accounting accounts: these assets are recorded in rubles without reflecting currency revaluation. At the same time, Instruction No. 6379-U does not provide for any other exceptions from the general methodological principles of reflecting financial assets in accounting.
Due to the requirements of the Bank of Russia’s accounting regulations, when applying them, credit institutions are guided by International Financial Reporting Standards (hereinafter referred to as IFRS). Thus, the estimated reserve for expected credit losses on financial assets is reflected by credit institutions in accounting in accordance with paragraph 5.5.1 of IFRS 9 “Financial Instruments” (hereinafter referred to as IFRS 9), and the method for assessing expected credit losses is determined in accordance with paragraph 5.5.17 of IFRS 9.
It is important to note that the principles of IFRS 9 do not provide for any specifics regarding assets that are non-current assets for Russian credit institutions, including the fact that the definition of a credit-impaired financial asset does not contain any circumstances due to which a blocked asset is recognized as non-current assets.
In their economic essence, NZA are losses of the CI, which, due to the relaxation introduced by the Bank of Russia, are recognized for the purposes of prudential regulation not at one time, but over a long period of time, until 2032, under the preferential reserve formation scheme for possible losses. At the same time, the preferential reserve scheme is not provided for by the principles of IFRS 9, that is, estimated reserves for expected credit losses are formed, including for accrued but not received interest income on NZA, in the amount of 100%.
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