Banks to disclose more data in their explanatory notes on reporting
A Bank of Russia ordinance related to the rollout of IFRS 9 sets out a further responsibility to disclose the following data in explanatory notes on financial statements:
— the amount, composition, structure and cost of investment in financial assets and liabilities, as well as the amount of profit earned from transactions with these instruments;
— any change in category assignment to a financial asset or liability;
— the amount of estimated loan loss provisions related to financial asset depreciation or change, as well as the reasons for a difference between such provisions and Bank of Russia-required loan loss provisions;
— a risk management strategy relating to hedged items (including information about hedging instruments, types and objects) and hedging efficiency.
Non-bank credit institutions (NCIs) will be exempt from the need to disclose core details of capital instruments and risks assumed, and their evaluation procedure and risk and capital management procedure (currently, all NCIs are obliged to disclose such data).
The ordinance updates Bank of Russia Ordinance No.