The accounting of bank reserves from operations with shareholders

Анотація

The aim of the article is a review of accounting of creating reserves from transactions with shareholders and using the provisioning results in the bank. The author considers four possible variants for displaying not at fair value reserves from transactions with shareholders. In particular, the investigation shows how assets account balances (discount or premium) correlate with the amount of financial instruments adjustments at initial recognition from transactions with shareholders shown on the capital accounts. The author theoretically proves that the differences between the fair value and contract value have signs of reserves as an accounting category. The accounting display of such provisions and results of its formation in the accounts of other comprehensive income is being reviewed on the example of banks’ accounting. The basic problematic aspects of possible variants of the results of the accounting items’ value adjustments usage are stated. In particular, the results of the adjustments should be used in the amount corresponding to the volume of discount or premium amortization. The author discussed options how to calculate the amount of reserves usage on the condition that the balances on the discount or premium accounts contain not only the difference between fair and contractual values. The parallel calculation of separate components of discounts or premiums that are currently used for the amortization of discounts or premiums of various maturities is applied by the analogy method for the usage of provisioning results from transactions with shareholders. For comparison, it is suggested to use the formula that allows distributing the provisioning results from the transactions with shareholders. The article shows the influence of the reviewed operations on the balances of the retained earnings accounts. The results differ a little bit, but considering the costs parallel calculation, the usage of the formula is more advantageous.

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