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Establishment of requirements to the contents and form of savings and loan associations’ balance sheet statement and income statement and the procedure of submitting the reports to Eesti Pank

Issuer:Governor of Eesti Pank
Type:regulation
In force from:01.01.2013
In force until: In force
Translation published:17.02.2017

Establishment of requirements to the contents and form of savings and loan associations’ balance sheet statement and income statement and the procedure of submitting the reports to Eesti Pank

Passed 06.11.2012 Annex 8

This decree is established on the basis of subsection 34 (1) of Eesti Pank Act.

Chapter 1 GENERAL PROVISIONS 

§ 1.  Scope of decree

  This decree establishes requirements to the contents and form of savings and loan associations’ balance sheet statement and income statement and the deadlines and procedure of submitting the reports to Eesti Pank.

§ 2.  Application of decree

  This decree applies to all savings and loan associations operating in Estonia.

Chapter 2 STATEMENTS, PRINCIPLES OF PREPARATION AND SUBMISSION THEREOF 

§ 3.  Statements

  A savings and loan association is obliged to prepare and submit:
 1) “Savings and loan association’s balance sheet statement”, code 26 (Appendix 1);
 2) “Savings and loan association’s income statement”, code 28 (Appendix 2).

§ 4.  Principles of preparing statements

 (1) The balance sheet statement (hereinafter the “balance sheet statement”) and income statement of a savings and loan association (hereinafter the “income statement”) are prepared pursuant to subsection 17 (1) of the Accounting Act.

 (2) The preparation of the balance sheet and the income statement are based on the Appendices of the decree:
 1) “Balance sheet statement scheme” (Appendix 3);
 2) “Guidelines for preparation of balance sheet statement” (Appendix 4);
 3) “Income statement scheme of savings and loan association” (Appendix 5);
 4) “Guidelines for preparation of income statement” (Appendix 6).

 (3) The balance sheet statement and income statement of a savings and loan association are prepared in euros and rounded up to integers. The amounts stated in
foreign currencies are converted into euros according to the exchange rate of Eesti Pank valid on the last banking day of the accounting period.

 (4) Balance sheet data are submitted as of the end of every reporting period, income statement data cumulatively as from the beginning of a reporting year.

 (5) The assets of a savings and loan association are recorded under the respective items of the balance sheet also in cases when an asset is pledged as collateral for its own or someone else’s liabilities.

 (6) All claims are recorded in the balance sheet until written off the balance sheet, even if some of them have been recorded in expenses as doubtful claims. Doubtful claims are recorded in the balance sheet under respective asset items with a minus sign.

§ 5.  Reporting period and terms of submission of statements

 (1) The reporting period of a savings and loan association’s balance sheet statement is one month. The reporting period of a savings and loan association’s income statement is one quarter.

 (2) The statements are submitted by the tenth day after the end of the reporting period.

 (3) If the due date for the submission of a statement falls on a day off, the statement will be submitted on the first working day following the day off.

§ 6.  Submission of statements

 (1) The statements are submitted to Eesti Pank electronically as XML-is (eXtensible Markup Language) format documents pursuant to the Eesti Pank Governor’s Decree No. 9 “Requirements for submission of reports formatted as XML documents” dated 9 December 2011.

 (2) If mistakes are identified in the statements or if calculation principles are changed, new, rectified electronic reports will be submitted to Eesti Pank.

Chapter 3 DEFINITIONS USED IN APPENDICES 

§ 7.  Definitions used

  The definitions in Appendices 1-4 to this decree will be used as defined in sections 8 and 9 of the decree.

§ 8.  Definitions used with regard to customers and issuers

 (1) Central government encompasses the following institutions:
Chancellor, the Supreme Court, the State Chancellery, ministries and county governments and institutions in their area of government (including the embassies and consulates of the Republic of Estonia);
 1) other legal persons in public law for the purposes of subsection 25 (2) of the General Part of the Civil Code Act, except Eesti Pank, the Guarantee Fund, the Estonian Health Insurance Fund, the Estonian Unemployment Insurance Fund, and trade associations in public law;
 2) foundations established by the state and legal persons in public law whose expenses have been covered by the above-mentioned persons in the extent of more than 50 per cent.

 (2) Local governments comprise all local government units, including municipal institutions administered by local government and foundations established by local government units whose expenses have been covered by the persons that established them in the extent of more than 50 per cent.

 (3) State social security funds comprise all state and local institutional units whose principal area of activity includes offering social support, and that meet the following two criteria:
 1) pursuant to law or other legislation certain population groups must participate in social security schemes or pay contributions;
 2) the general government is responsible for management of the institution by imposing or approving contributions and social benefits, irrespective of its role as a supervisory body or employer.
For example, the Estonian Health Insurance Fund and Estonian Unemployment Insurance Fund are regarded as state social security funds.

 (4) Insurance company is a company specified under subsection 3 (1) of the Insurance Activities Act.

 (5) Pension fund is a contractual investment fund as provided in section 3 of the Funded Pensions Act.

 (6) Other financial institution is a commercial undertaking as provided in section 5 of the Credit Institutions Act (e.g., investment fund, investment firm, savings and loan association, management company, payment institution, electronic money institution, undertaking rendering leasing services, undertaking providing foreign currency exchange services, operator of regulated securities markets, operator of the securities settlement system, undertaking providing securities listing services, firm offering financial consultation services, insurance broker, and other firm and ancillary undertaking rendering financial intermediation services). The Guarantee Fund is also recorded under other financial institutions.

 (7) Credit institution is a commercial undertaking specified under subsection 3 (1) of the Credit Institutions Act.

 (8) Commercial undertaking of the state and local government is a commercial undertaking, which is under dominant influence (control) of the central government, local government unit or any other legal person in public law for the purposes of the Securities Market Act, except for professional investors specified in subsection 6 (2) of the Securities Market Act. Profit-making state agencies (e. g., the State Forest Management Centre) are also recorded under commercial undertakings of the state and local government.

 (9) Other commercial undertaking is a commercial undertaking not specified under the subsections above. Other commercial undertakings also include sole proprietors who employ ten or more employees.

 (10) Non-profit institution is a voluntary union of persons and other legal person in private law as provided in section 1 of the Non-profit Institutions Act and section 1 of the Foundations Act, except foundations which have to be recorded under central government or local government.

 (11) Private person is a natural person or sole proprietor who employs up to nine employees. Private person is also a sole proprietor if it is impossible to identify the existence of employed persons.

 (12) Central bank is a legal person whose principal task is to organise currency circulation both in their home country and with foreign countries, as well as partial or full holding of the country's international reserves (e.g., Eesti Pank in the Republic of Estonia).

§ 9.  Definitions used with regard to claims and liabilities

 (1) Loan constitutes a financial claim under a contract in compliance with loan agreement terms and conditions provided for under subsection 396 (1) of the Law of Obligations Act.

 (2) Overdraft facility comprises loan resources at the client's disposal as provided in subsections 407 1)-4) of the Law of Obligations Act.

 (3) Subordinated loan is a claim satisfied after the justified claims of any other creditors in the event of dissolution or declaration of bankruptcy of the debtor or a credit institution’s liability that meets the conditions provided in section 721 of the Credit Institutions Act.

 (4) Deposit is a financial obligation of the account manager to the account holder, which arises from the settlement contract or deposit agreement made between the account manager and account holder. Deposits also include registered acknowledgement of obligation (certificates of deposit) issued in respect of the deposit, if it is not transferable.

 (5) Demand deposit is a deposit complying with the following conditions:
 1) the deposit is intended for settlements;
 2) the deposit is made for an unspecified term;
 3) the deposited funds can be used and controlled freely (subject to up to 24-hour's advance notice).

 (6) Time deposit is a deposit complying with the following conditions:
 1) the deposit is intended for depositing money;
 2) the deposit is not intended for settlements with third parties;
 3) the term for the deposit is fixed by a contract;
 4) the amount of the deposit and the interest paid are fixed by a contract and the basis for the calculation of interest is not subject to change;
 5) violation of the contract conditions may result in contractual penalty (e.g., lower interest).

 (7) Savings deposit is a deposit complying with the following conditions:
 1) the deposit is intended for accumulating and depositing money;
 2) the deposit is not intended for settlements with third parties;
 3) the term for the deposit may be associated with a specific condition (e.g. wedding day, accumulation of a certain amount of money);
 4) the amount deposited may be increased;
 5) violation of the contract conditions entails penalty;
 6) the origination of the right to withdraw the deposit may be tied to the obligation to notify the account holder thereof in advance;

 (8) Loan resource for specific purposes is a resource that has been allocated to a savings and loan association for re-lending to a specific target group and/or under pre- determined conditions.

 (9) Share is an equity instrument which proves the right of its owner to a part of the assets and earnings of a public limited company and grants its owner (shareholder) the right to participate in the general meetings of shareholders and in distribution of the earnings or the assets remaining after dissolution of the company, and other rights provided by the law and the articles of association.

 (10) Unit is an equity instrument certifying its holder’s right to a part of the assets and earnings of a private limited company and entitles the holder to participate in the management of a private limited company, distribution of earnings and, upon dissolution of the private limited company, distribution of remaining assets, and other rights provided by the law and the articles of association.

Chapter 4 IMPLEMENTING PROVISIONS 

§ 10.  Repealing of decree

  The Eesti Pank Governor’s Decree No. 10 “Establishment of requirements to the contents and form of savings and loan associations’ balance sheet statement and income statement” dated 7 November 2008 (RTL 2008, 92, 1289; RT I, 2010, 51,
 1) shall be repealed).

§ 11.  Entry into force of decree

  This Decree enters into force on 1 January 2013 and it applies to the preparation and submission of statements starting from the accounting periods ending on 31 January 2013 or later.

Ardo Hansson
Governor

Appendix 1-6