Сертифицировано Русским Регистром

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Eugene Sims
5 years ago
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1 The Accounting Policy of IDGC of Volga, JSC was approved by Order No. 74 dated March 26, 2008, as amended by Order No. 697 dated December 30, 2013, with chnages, made by orders 159, dated April14, 2014, 277 dated July 16, 2014, 508 dated December 31, 2014, 96 dated February 24,2015, 126 dated March16, 2015., 311 dated July13,2015., 598 date December 31, 2015, 85 dated February 08, The Accounting Policy is intended to ensure uniformity and consistency of applicable accounting principles, approaches and methods used for the purposes of bookkeeping operations management and generation of the Company s accounting reporting. The Accounting Policy ensures: integrity and consistency of applicable financial accounting principles, approaches and methods used for the purposes of financial accounting management and generation of the Company s accounting reporting (financial statements); consistent procedure for approving the accounting methods primary observation, value measurements, current grouping and final consolidation of business operations; consistent principles of the Company s asset inventory accounting; consistent methods of valuation of assets and liabilities; consistency of other methods and techniques necessary for financial accounting. The Accounting Policy is designed in compliance with applicable laws and regulations of the Russian Federation and Accounting Regulations: Law No. 402-FZ Federal Law No. 402-FZ On Accounting dated December 06, 2011; RAS 1/2008 Russian Accounting Standard Accounting Policy of an Organization. Approved by Order of the RF Ministry of Finance No. 106н dated October 06, 2008; RAS 2/2008 Russian Accounting Standard Construction Contract Accounting. Approved by Order of the RF Ministry of Finance No. 116н dated October 24, 2008; RAS 3/2006 Russian Accounting Standard Accounting of Assets and Liabilities Expressed in Foreign Currency. Approved by Order of the RF Ministry of Finance No. 154н dated November 27, 2006; RAS 4/99 Russian Accounting Standard Accounting Policy of an Organization. Approved by Order of the RF Ministry of Finance No. 43н dated July 06, 1999; RAS 5/01 Russian Accounting Standard Inventory Accounting. Approved by Order of the RF Ministry of Finance No. 44н dated June 09, 2001; RAS 6/01 Russian Accounting Standard Accounting of Fixed Assets. Approved by Order of the RF Ministry of Finance No. 26н dated March 30, 2001; RAS 7/98 Russian Accounting Standard Events after Reporting Date. Approved by Order of the RF Ministry of Finance No. 25н dated November 25, 1998; RAS 8/2010 Russian Accounting Standard Estimated Liabilities, Contingent Liabilities and Contingent Assets. Approved by Order of the RF Ministry of Finance No. 167н dated December 13, 2010; RAS 9/99 Russian Accounting Standard Incomes of an Organization. Approved by Order of the RF Ministry of Finance No. 32н dated May 06, 1999; RAS 10/99 Russian Accounting Standard Expenses of an Organization. Approved by Order of the RF Ministry of Finance No. 33н dated May 06, 1999;

2 RAS 11/2008 Russian Accounting Standard Information about Related Parties. Approved by Order of the RF Ministry of Finance No. 48н dated April 29, 2008; RAS 12/2010 Russian Accounting Standard Segment Information. Approved by Order of the RF Ministry of Finance No. 143н dated November 08, 2010; RAS 13/2000 Russian Accounting Standard Accounting of Government Assistance. Approved by Order of the RF Ministry of Finance No. 92н dated October 16, 2000; RAS 14/2007 Russian Accounting Standard Accounting of Intangible Assets. Approved by Order of the RF Ministry of Finance No. 153н dated December 27, 2007; RAS 15/2008 Russian Accounting Standard Accounting of Expenses Related to Loans and Credits. Approved by Order of the RF Ministry of Finance No. 107н dated October 06, 2008; RAS 16/2010 Russian Accounting Standard Information about Discontinuing Activities. Approved by Order of the RF Ministry of Finance No. 66н dated July 02, 2002; RAS 17/02 Russian Accounting Standard Accounting of Research, Development and Engineering Expenses. Approved by Order of the RF Ministry of Finance No. 115н dated November 19, 2002; RAS 18/2008 Russian Accounting Standard Accounting of Expenses Related to Income Tax. Approved by Order of the RF Ministry of Finance No. 114н dated November 19, 2002; RAS 19/02 Russian Accounting Standard Accounting of Financial Investments. Approved by Order of the RF Ministry of Finance No. 126н dated December 10, 2002; RAS 20/03 Russian Accounting Standard Information about Participation in Joint Ventures. Approved by Order of the RF Ministry of Finance No. 105н dated November 24, 2003; RAS 21/2008 Russian Accounting Standard Changes in Accounting Estimates. Approved by Order of the RF Ministry of Finance No. 106н dated October 06, 2008; RAS 22/2010 Russian Accounting Standard Correction of Errors in Financial Accounting and Reporting. Approved by Order of the RF Ministry of Finance No. 63н dated June 28, 2010; RAS 23/2013 Russian Accounting Standard Cash Flow Statement. Approved by Order of the RF Ministry of Finance No. 11н dated February 02, 2011; Order No. 34н Regulation on Financial Accounting and Reporting in the Russian Federation. Approved by Order of the RF Ministry of Finance No. 34н dated July 29, 1998; The Company s Accounting Policy is based on the following assumptions (conventions): Business Entity Convention. This assumption means that, for accounting purposes, the business and its owner(s) are treated as being quite separate and distinct, i.e. assets and liabilities of the Company exist separately from assets and liabilities of other companies. The Company books on its balance only those assets that are controlled by the Company by operation of law or under contract. Examples include property owned or leased by the Company. Going Concern Convention. This assumption means that the Company will continue its activity in the foreseeable future, and there is no intention, or need, to liquidate or substantially reduce its activity, and therefore, the Company s obligations will be discharged when due in accordance with the applicable procedure; Accounting Continuity Convention (consistency concept). This assumption means that once the accounting policy has been adopted by the Company, it must be used in succession from one accounting year to another, unless there is a sound reason to do otherwise. Accrual Principle Convention. This assumption means that revenues and expenses are recorded when they occur and not when the cash is received or paid out. To meet this requirement, all departments of the Company must submit primary (source) accounting documents to the accounting departments. An error is recognized as material if, alone or in combination with other errors reported in the same period, it could influence the economic decisions of users taken on the basis of their

3 financial statements prepared for this reporting period. A particular error must be recognized as significant if, when corrected, it will result in an accounting index (reported within the error period) increased by over 5%: for indices that affect generation of data according to Form No. 1 Balance Sheet 5% of the balance currency; for indices that affect generation of income data according to Form No. 2 Profit and Loss Statement 5% of the index Proceeds (net) from sale of goods, works, services, for expenses reported in Form No. 2 Profit and Loss Statement 5% of the index Cost of production of sold goods, works, services. Related Parties mean: a legal entity and (or) an individual and the Company that are affiliated persons in compliance with the laws and regulations of the Russian Federation; a legal entity and (or) an individual registered as an individual entrepreneur, and the Company, who participate in joint ventures; the Company and Non-State Pension Fund that acts in the interests of the Company s employees or employees of another company being the Company s related party; Key managerial staff (General Director, Deputy General Director for Security, Deputy General Director for Technical Issues (Chief Engineer); Deputy General Director for Economics and Finance, Deputy General Director for Corporate Governance, Deputy General Director for Capital Construction, Deputy General Director for Service Development and Sales, Deputy General Director Branch Director; Chief Accountant (Head of the Department of Financial and Tax Accounting and Reporting); members of the Management Board; members of the Board of Directors). The reporting segment is represented by the Company branches. Advance payments made for the purposes of capital construction shall be reported in the Balance Sheet in Section I Non-Current Assets irrespective of the maturity dates for liquidation of obligations under advance payments (pre-payments) by contracting parties less VAT amounts. Materials to be used for creation of non-current assets shall be reported in a separate line added to the master line Capital Assets of the Balance Sheet. Costs of equipment purchased for installation shall be reported in the Balance Sheet as part of the Capital Assets (as part of an indicator in the line Construction in Progress added to the master line Capital Assets ). For the purpose of financial accounting and reporting, assets that must be classified as capital assets with the unit cost equal to or less than 40,000 rubles shall be reported as part of inventory and shall be recognized as production costs (sales costs) as soon as they are released to production and operation. Acquisition of such facilities shall be reported directly on Account 10 Materials without using Account 08 Investments into Non-Current Assets. The following facilities are classified as fixed assets (PPE Plant, Property and Equipment) irrespective of their value: electric grid facilities, land plots, building, structures, and motor vehicles. Once recognized, fixed assets must be evaluated at their original (historical) cost. Fixed assets are not subject to re-valuation. Depreciation of fixed assets is made using the straight line depreciation method. If a fixed asset is still being used, its cost and accumulated depreciation remain in the ledger even if the asset is fully depreciated. The historical cost of intangible assets is reported in Account 04 Intangible Assets, the accumulated amortization of intangible assets is reported in Account 05 Amortization of Intangible Assets. When entering the intangible assets into the ledger, it is necessary to assess whether the useful life of an intangible asset is finite or indefinite and, if finite, the length of that useful life. The length of useful life must be determined by an expert commission and approved by the Company.

4 An intangible asset with an indefinite useful life shall not be amortized. The useful life of an intangible asset that is not being amortized shall be reviewed by the Company on an annual basis to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. R&D activities are expensed as incurred over a predefined period using the straight-line method. The period over which R&D costs are written off must be determined by an ad hoc committee. The period must be based on the expected life period of R&D results over which the Company can derive economic benefits, but in no case more than 5 years. Such useful life of R&D results must not exceed the duration of the Company. The period over which R&D costs are written off must be determined by an ad hoc R&D committee on a case-by-case basis. Actual value of inventories manufactured by the Company shall be based on the actual expenses related to production of such inventories. Materials are recognized in Account 10 Materials at the actual cost of their purchase (procurement). Inventories written off for production, or sold, or disposed for any reasons whatsoever are estimated at the average cost as of the date of their withdrawal from stock. Dedicated tools that meet the requirements of RAS 6/01, clause 4, with the value exceeding the predefined limit (40,000 rubles) and useful life of over 12 months, must be accounted in accordance with the fixed asset accounting procedure. Dedicated tools with the value exceeding the predefined limit and useful life less than 12 months (irrespective of their useful life) must be accounted in accordance with the generally accepted inventories accounting procedure. Special clothing with standard useful life of less than 12 months is expensed as incurred once released for production (operation). Special clothing with standard useful life of more than 12 months is expensed as incurred according to the straight-line method. Reserves for depreciation of inventories are generated for raw materials, consumables, finished products, goods, etc. No depreciation reserves are generated for goods recognized as goods delivered as of the end of a reporting year. The reserve must be generated for each inventory unit. The period for writing off deferred expenses (expenses of future periods) is defined for each specific asset type once this asset is entered into the ledger. The write-off period can be based on: with regard to one-off payments for the granted right to use intellectual activity results or means of individualization effective period of a contract, with regard to other facilities the period over which the Company intends to derive economic benefits from usage of such facility. If a period to which expenses relate cannot be exactly determined on the basis of the relevant confirming document, such period must be based on the expert opinion. All groups of accounts receivable and accounts payable are classified as short-term debts, if they must be redeemed within 12 months after the reporting date; otherwise, they are classified as long-term debts. For the purposes of financial reporting, financial investments are divided into long-term and short-term, depending on a period over which the Company intends to derive economic benefits from such financial investments: The Company must check depreciation of financial investments as of December 31 of each reporting year. Depreciation of financial investments is defined as steady and substantial decrease in the value of financial investments below the level of economic benefits expected to be derived by the Company from such financial investments.

5 Cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value. Cash equivalents include bills of exchange with maturity periods of up to three months, short-term government securities and bank deposits with maturity periods of up to three months as of the reporting date. Principle amount of debts on received loans is recognized at the moment of drawing of a loan to the actual amount of funds received. Interest payable to lender (creditor) in relation to purchase, construction and (or) manufacturing of an investment asset are reduced by the amount of proceeds from temporary use of borrowed funds under credits or loans as long-term and (or) short-term financial investments. The Company creates estimated liabilities (contingencies) under pending lawsuits (as of the reporting date) (in which the Company acts as a claimant or a defendant, and where decisions potentially resulting in cash outflows can be made in subsequent reporting periods only), wages and salaries (compensations for employees including paid vacations, quarterly performance-based incentives, annual total performance-based incentives, directors emoluments, i.e. payments made to members of the Board of Directors, including salary, bonuses, etc), and other similar liabilities. For the purpose of reporting of income and expenditures, the following types of the Company s activity are recognized: electric power transmission; technological connection to power grids; resale of the electric power and capacity; participation in other organizations; organization of functioning and development of an electronetwork complex; technical advice; lease; sale of other products (services) related to core business; sale of non-core products (services). Proceeds are accepted for accounting in the amount estimated in monetary terms, which is equal to value of funds and other property receipt and (or) value of accounts receivable. On completion of the reporting period, general production expenses of each branch are allocated and written off to prime cost of works (services) delivered by such branch by the following expense items per each of the following types of activity: Prime cost of power transmission services, Prime cost of services for technological connection to the grid, Prime cost of services for repair and maintenance of external parties networks, Prime cost of construction and assembly works for external parties and Prime cost of other services of industrial nature. The base for distribution of general production expenses of structural subdivisions of the main production facilities is represented by direct expenses for wages, made to perform this or that type of activity. By the end of the reporting period, general running expenses are fully written off to the decrease in proceeds from sales (works, services). Selling expenses are fully written off to the debit of Account 90 Sales without any distribution by types of sold products by the end of the reporting period. Amount of the current profit tax is determined on the basis of data generated in accounting records.

OOO UBS Bank Financial statements

OOO UBS Bank Financial statements Financial statements Year ended 31 December 2010 Together with Independent Auditor s Report ООО UBS Bank 2010 Financial statements Contents Independent auditors' report Statement of financial position...