1. Transition to IFRS in the Banking Sector IFRS application practice This Project is funded by EU September 2007

2. IAS 24 Related Party Disclosure Transition to IFRS in the Banking Sector

3. Переход на МСФО в Банковском секторе3 Contents Objective and scope of the standard Definition of related parties Disclosures Relationships with parent and subsidiary undertakings; Compensation to key management personnel; Related party transactions. Undertakings, which are related only over the reporting period

4. Переход на МСФО в Банковском секторе4 Objective and scope of the standard Objective of the standard is to ensure disclosures in the financial statements necessary to highlight the possibility that an undertaking’s financial position and its profit, or loss, may have been affected by the existence of related parties, and by transactions and outstanding balances with such parties The standard is applied in: identifying related party relationships and transactions; identifying outstanding balances between an undertaking and related parties; determining scope, nature and terms of disclosures.

5. Переход на МСФО в Банковском секторе5 Definition of related parties Significant influence 1.Associate (dependent) undertakings 2.Key management personnel 3.Close members of the family Control 1.Parent undertakings 2.Subsidiary undertakings 3.Joint venture 4.Other undertakings controlled by owners or key management personnel Pension funds

6. Переход на МСФО в Банковском секторе6 Definition of related parties In considering each possible related party relationship attention needs to be directed to the substance of the relationship and not merely the legal form. A related party transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price is charged.

7. Переход на МСФО в Банковском секторе7 Disclosure 1.Relationships between parents and subsidiaries; 2.Key management personnel compensation; 3.Transactions between related parties. Disclosures that related party transactions were made on terms equivalent to those that prevail in transactions between unrelated parties (in arm’s length transactions) are made only if such terms can be substantiated.

8. Переход на МСФО в Банковском секторе8 Disclosures – relationships between parents and subsidiaries Parents and all subsidiaries shall be disclosed, whether or not there have been transactions between those related parties. An undertaking shall disclose the ultimate controlling party (an undertaking or an individual), if different from the parent. If neither the undertaking’s parent nor the ultimate controlling party produces financial statements available for public use, the name of the next most senior parent that does so shall also be disclosed.

9. Переход на МСФО в Банковском секторе9 Disclosures – key management personnel compensation An undertaking shall disclose key management personnel compensation in total and for each of the following categories: (а) short-term employee benefits; (b) post-employment benefits; (c) other long-term benefits; (d) termination benefits; and (e) equity compensation benefits.

10. Переход на МСФО в Банковском секторе10 Disclosures – related party transactions Related party transactions – at minimum disclosures shall include: (а)the nature of relationships with the related party and the nature of the transactions; (b) the amount of the transactions; (c) the amount of outstanding balances and : (i) their terms and conditions, including whether they are secured, and the nature of the consideration to be provided in the settlement; and (ii) details of any guarantees given or received; (d) provisions for impairment related to the amount of outstanding balances; and (e) the expense recognised during the period in respect of bad or doubtful debts due from related parties

11. Переход на МСФО в Банковском секторе11 Disclosures – related party transactions Presentation of information Major categories of related parties The parent Undertakings with joint control over the undertaking Subsidiaries Associates (dependent undertakings) Undertakings jointly controlled by the undertaking with third parties Key management personnel Other related parties

12. Переход на МСФО в Банковском секторе12 Undertakings, which are related parties only in the reporting period Reporting periodDisclosures: Income statement + balance sheet at the beginning of the period Income statement + balance sheet at the end of the period Income statement Income statement + balance sheet at the beginning and end of the period, when the parties are related

13. IAS 24 Related Party Disclosure THANK YOU FOR YOUR ATTENTION! THANK YOU FOR YOUR ATTENTION!