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LEGAL ACTS OF THE REPUBLIC OF LATVIA
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Text consolidated by Valsts valodas centrs (State Language Centre) with amending regulations of:

27 April 2010 [shall come into force from 1 May 2010];
29 Marchl 2011 [shall come into force from 1 January2012];
16 October 2011 [shall come into force from 1 January 2012];
6 August 2012 [shall come into force from 1 January 2013];
10 December 2013 [shall come into force from 1 January 2014].

If a whole or part of a paragraph has been amended, the date of the amending regulation appears in square brackets at the end of the paragraph. If a whole paragraph or sub-paragraph has been deleted, the date of the deletion appears in square brackets beside the deleted paragraph or sub-paragraph.

 

Republic of Latvia

Cabinet
Regulation No. 1486
Adopted 15 December 2009

Procedures by Which Budget Institutions shall Organise the Accounting Thereof

Issued pursuant to
Section 29, Paragraph two of
the Law On Budget and Financial Management

1. General Provisions

1. This Regulation prescribes the procedures by which budget institutions shall organise the accounting thereof:

1.1. by using uniform basic principles for accounting and the chart of accounts (Annex 1);

1.2. in compliance with the laws and regulations governing accounting, and the International Public Sector Accounting Standards; and

1.3. observing the property, plant and equipment depreciation norms and application conditions.

[29 March 2011]

2. Budget institutions shall record all the non-current assets, current assets and liabilities, which are owned, possessed and held by them and are within their competence, according to corroborative documents and economic essence of a transaction.

[16 October 2012]

3. This Regulation shall not apply to the accounting of tax revenue and the State financial accounting in the Treasury.

4. [29 March 2011]

5. A ministry, another central State institution or a local government shall develop and approve, for a sector or for a local government, a uniform accounting procedure, which conforms to the laws and regulations governing the field of accounting and budget and correspond to the specific nature of the sector or local government. The uniform accounting procedure shall be observed by all institutions involved in consolidation of financial reports.

6. The accounting procedure shall prescribe definite principles, guidelines, methods, provisions and practice (including basic principles for accounting, chart of accounts and recording of transactions, materiality level) to be used by a budget institution when performing accounting and preparing financial reports.

[16 October 2012]

6.1 In order to ensure consistent accounting of assets, liabilities, changes therein and transactions, and to prepare high-quality reports, budget institutions shall use in their accounting the chart of accounts, adding supplementary characters to analytical accounting, if necessary. Budget institutions shall use the accounts approved within the scope of the accounting procedures laid down in Paragraph 5 of this Regulation.

[29 March 2011]

2. General Principles for the Accounting of Items of Financial Reports

2.1. Accounting of Non-current Assets

7. Non-current assets are all types of resources, which a budget institution plans to use for a time period exceeding one year, as well as all types of assets, payment of which is intended later than one year following the balance sheet date.

8. Non-current assets shall be divided into the following groups:

8.1. intangible assets;

8.2. property, plant and equipment; and

8.3. non-current financial investments.

9. The date of recognition of a non-current asset shall be the day when all the risks and economic benefits to be obtained from the relevant asset are transferred to the institution.

10. Non-current assets shall be recognised, if:

10.1. it is probable that the budget institution will use them for ensuring functions or providing services;

10.2. the useful life thereof exceeds 12 months following the acceptance in use (service);

10.3. the costs thereof can be reliably measured;

10.4. they have been acquired in order to transfer them without consideration to the general government sector structures, except merchants controlled and financed by them;

10.5. a decision has not been taken to use immovable property that has been taken over in the jurisdiction of the State according to laws and regulations.

[29 March 2011]

11. Non-current assets initially shall be recognised at the cost of acquisition or construction thereof, which comprises the cash (or equivalent thereof) paid for the acquisition or construction of the relevant non-current asset and all costs that are directly attributable to the acquired object until the day when it is put into service:

11.1. purchase price of the non-current asset, including customs duties, non-deductible taxes, except the received discounts;

11.2. costs for delivery and movement of the non-current asset up to the place of use thereof;

11.3. remuneration for work, which has directly occurred during the process of acquiring or constructing the non-current asset;

11.4. costs for preparation of the non-current asset (introduction, installation, assembly costs) for the intended purpose until its putting and acceptance into use (service);

11.5. costs for professional services directly attributable to the acquisition or construction of the non-current asset.

12. Inclusion of costs in the cost of a non-current asset (property, plant and equipment) shall be ceased on the day when it is put into use (service).

13. Property, plant and equipment shall be recognised in conformity with the provisions referred to in Paragraph 10 of this Regulation and with the initial recognised cost laid down in laws and regulations in the field of budget expenditure classification.

[29 March 2011]

14. If the cost of acquisition or construction of one unit of property, plant and equipment is less than the initial recognition value of one asset unit laid down in laws and regulations in the field of budget expenditure classification, the assets shall be accounted in the composition of current assets.

[29 March 2011]

15. Library funds, original works of entertainment, literature and art, precious stones and precious metals, antique and other objects of culture and art, other valuables and objects of museum holdings shall be accounted together with other property, plant and equipment irrespective of the recognition value of one asset unit. Intangible assets and immovable property shall be accounted in the composition of non-current assets in the relevant accounts irrespective of the cost, in conformity with the provisions referred to in Paragraph 10 of this Regulation.

[29 March 2011]

16. In a statement on the financial position of a budget institution (balance sheet) (hereinafter - the balance sheet) the non-current assets shall be disclosed in the carrying amount (remaining amount), deducting the accumulated depreciation (amortisation) for property, plant and equipment and intangible assets, impairment loss, impairment loss of unsafe non-current debts and unsafe prepayments for non-current assets from the acquisition (initial) cost of the non-current assets.

17. The depreciation of property, plant and equipment and the amortisation of intangible assets (writing-off of the value) shall be calculated according to the intended useful life thereof, dividing the initial cost systematically during the useful life, shall be accounted as accumulated depreciation (amortisation) and recognised in the basic activity expenditure of the institution in the reporting period.

[29 March 2011]

17.1 The depreciation of property, plant and equipment shall be calculated according to the depreciation norms of property, plant and equipment laid down in Annex 2 to this Regulation and the application provisions laid down in Chapter 2.1.1 of this Regulation.

[29 March 2011]

17.2 The useful life for intangible assets shall be determined according to the accounting procedures of the budget institution.

[29 March 2011]

17.3 The useful life for non-current assets in leased property, plant and equipment shall be determined according to the term of operation of the lease, rental or management contract concluded or according to the accounting procedures of the budget institution.

[29 March 2011]

18. A non-current asset, except forest stands, shall be evaluated by the commission approved by the head of the budget institution, inviting experts of the relevant field, where necessary. The commission or the abovementioned specialists shall evaluate the asset or approve the investment cost, if such is known, by using generally recognised evaluation methods or the methods referred to in Paragraphs 32, 33, 34 and 35 of this Regulation, in the following cases:

18.1. when including in the balance sheet a non-current asset that has not been accounted previously;

18.2. when including in the balance sheet a non-current asset received as donations and gifts;

18.3. when including in the balance sheet a non-current asset received through exchange;

18.4. when determining the impairment of the non-current asset.

[16 October 2012]

18.1 Budget institutions shall, until the assessment of a non-current asset or approval of the value thereof referred to in Paragraph 18 of this Regulation, ensure accounting of assets in quantitative units.

[16 October 2012]

19. A budget institution, which transfers a non-current asset to another budget institution without consideration, shall provide information regarding the accounting of the non-current asset (details of the affiliation of the property, plant and equipment to the accounting category up to the sub-group, initial cost, depreciation, impairment loss, for forest stands - the value accounted in other reserves, remaining useful life, relevant indication and value, if the property, plant and equipment value has been initially recognised in the revenue of the subsequent periods).

[29 March 2011]

20. A budget institution shall, when transferring a non-current asset to another budget institution without a consideration, exclude:

20.1. its initial cost, impairment loss and depreciation (amortisation), and shall recognise expenditures from transfers without consideration in the remaining amount of the non-current asset;

20.2. the established non-current asset revaluation reserve, which relates to such non-current asset and shall recognise other revenues;

20.2.1 the established other reserves (for forest stands), which relate to such non-current asset, and shall recognise revenues from transfers without consideration;

20.3. revenues of the subsequent periods, which relate to such non-current asset, and shall recognise revenues from transfers without consideration.

[29 March 2011; 16 October 2012]

21. A budget institution, which receives a non-current asset from another budget institution without consideration, shall continue to calculate the depreciation (amortisation) in the remaining useful life of the non-current asset in conformity with the information received regarding the non-current asset.

22. A budget institution, when receiving a non-current asset from another budget institution without consideration, shall:

22.1. recognise its initial cost, impairment loss, depreciation (amortisation) and revenues from values received without consideration in the remaining amount of the non-current asset according to the essence of the transaction (receipt of a non-current asset from another budget institution, institution subordinate thereto, State or local government institution);

22.1.1 recognise other reserves (for forest stands) and expenditures from values received without consideration;

22.2. recognise expenditures from values received without consideration and revenues of the subsequent periods, if in the previous budget institution the value of the non-current asset has been initially accounted in the revenues of the subsequent periods;

22.3. continue to calculate the depreciation (amortisation) in the remaining useful life of the non-current asset in conformity with the information received from the previous budget institution regarding the non-current asset;

22.4. account the values of the non-current asset in such accounting category, which has been disclosed by the previous budget institution. If necessary, the abovementioned values shall be re-classified in conformity with the requirements laid down in the accounting procedures of the budget institution.

[29 March 2011; 16 October 2012]

23. For the determination of the value of land and buildings in the cases referred to in Sub-paragraphs 18.1 and 18.2 of this Regulation the cadastral value thereof may be used, while for forest stands - the data of the State Forest Register.

24. For ensuring accounting of museum holdings, as well as library funds, the inventory registration data specified in laws and regulations in the field of museum holdings and library funds shall be used.

25. When transferring the State and local government property owned and possessed by a budget institution for holding to State or local government capital companies, port administrations or derived public persons, the initial cost and accumulated depreciation thereof shall be accounted in separate accounts in the composition of property, plant and equipment or financial investments.

[16 October 2012; 10 December 2013]

25.1 State property that has been transferred for privatisation or alienation and the property rights to which in the Land Register or in the Register of Shareholders (Stockholders) in a Commercial Company are registered on behalf of the institution performing the privatisation (alienation) in the name of the State in accordance with Section 8, Paragraph seven of the Law On the State and Local Government Land Ownership Rights and Corroboration of Such Rights in Land Registers, Section 36, Paragraph two of the Law On Recording of Immovable Property in the Land Registers, and Section 10, Paragraph one, Clause 2 of the Law On State and Local Government Capital Shares and Capital Companies, shall be accounted by the Ministry of Economics.

[10 December 2013]

25.2 Immovable property that has been transferred for privatisation or alienation and which has been received in the possession by the institution performing the privatisation (alienation), but the property rights to which have not been corroborated in the Land Register yet, shall be accounted by the Ministry of Economics.

[10 December 2013]

26. A budget institution shall, according to the depreciation norms of property, plant and equipment and provisions for the application thereof laid down in Annex 2 to this Regulation, continue to calculate depreciation in the remaining useful life of property, plant and equipment for the owned and possessed State and local government property that has been transferred for holding to State or local government capital companies, port administrations or derived public persons.

[16 October 2012]

27. At the end of each reporting period (financial year, unless laid down otherwise in the laws and regulations regarding the preparation of statements) a budget institution shall assess if there are any indications that indicate a substantial impairment loss of the non-current assets (except for forest stands and non-current assets recognised in the cadastral value). A budget institution shall evaluate the following features:

27.1. demand for the service, which is provided by the budget institution using the relevant non-current asset, has substantially decreased or does not exist;

27.2. a government or local government has taken a decision that causes substantial negative changes in the operation of the budget institution;

27.3. the non-current asset is out-of-date or physically damaged;

27.4. substantial non-current changes have occurred in the anticipated utilisation of the non-current asset, which have a negative effect on the operation of the budget institution;

27.5. a decision to suspend the construction of the non-current asset has been taken prior to completion or putting into use (service) thereof.

[29 March 2011; 16 October 2012]

28. If at least one of the features referred to in Paragraph 27 of this Regulation exists, the commission approved by the head of the budget institution shall, inviting experts of the relevant field, where necessary, first of all evaluate whether it is possible to determine the fair value of the non-current asset less costs to sell.

29. The fair value is:

29.1. the amount for which the asset can be exchanged between knowledgeable, willing and non-related persons;

29.2. the amount less costs of disposal, which can be acquired in the asset alienation (sale) transaction between knowledgeable, willing and non-related persons.

30. The fair value of a non-current asset can be determined in the following cases:

30.1. the non-current asset price, which has been adjusted by the costs that directly relate to the alienation of the non-current asset, in the agreement (binding contract of sale) concluded in the transaction by the non-related persons is known;

30.2. if binding contracts of sale are not available, but the non-current asset is traded in the active market, then the fair value shall be the market value of the non-current asset (the current offer price). If the current offer prices are not available, the last transaction price shall be applied for determining the fair value of the non-current asset, based on the assumption that there have not been any substantial changes in the asset market from the transaction date until the date when calculations have been performed;

30.3. if binding contracts of sale are not available and an active market does not exist, the fair value shall be determined according to the information available regarding the value that could be acquired by the institution from the sale of the non-current asset to a non-related person on the date when calculations have been performed. In order to determine such value, a recent similar transaction in the same sector or field of economic activity may be evaluated.

31. In the cases referred to in Paragraph 30 of this Regulation the commission approved by the head of the budget institution shall, inviting experts of the relevant field, where necessary, determine the fair value of the non-current asset less costs to sell, and the value in use:

31.1. if the fair value of the non-current asset, after deducting the costs to sell, exceeds the carrying (remaining) amount of the non-current asset, the value in use of the non-current asset need not be calculated and the impairment of the non-current asset value need not be performed;

31.2. if the fair value of the non-current asset, after deducting the costs to sell, is lower than the carrying (remaining) amount of the non-current asset, the value in use shall be determined.

31.1 If it is impossible to determine the fair value of a non-current asset, the commission approved by the head of the budget institution shall, inviting experts of the relevant field, where necessary, determine the value in use of the non-current asset.

[29 March 2011]

32. In order to determine the value in use of a non-current asset, the following methods shall be applied:

32.1. the method of depreciated replacement cost;

32.2. the method of recoverable service amount (the method of restoration costs), if it is impossible to apply the method referred to in Sub-paragraph 32.1 of this Regulation;

32.3. the method of service units, if it is impossible to apply the method referred to in Sub-paragraph 32.1 of this Regulation.

33. When applying the method of depreciated replacement cost, the present value of the remaining service potential shall be determined by amortising the cost of an equivalent non-current asset according to the depreciation of the present non-current asset.

34. When applying the method of recoverable service amount (the method of restoration costs), the present value of the remaining service potential shall be determined by subtracting the estimated non-current asset restoration costs, which are necessary in order to restore the service potential of the asset at such a level as was before impairment, from the current replacement costs of the remaining service potential (before impairment) of the non-current asset.

[29 March 2011]

35. When applying the method of service units, the present value of the remaining service potential shall be determined by reducing the current costs of the remaining service potential of the asset before impairment to conform to the reduced number of the service units.

36. In accordance with the provisions referred to in Paragraph 32 of this Regulation the calculated value in use of a non-current asset shall be compared to the fair value thereof, deducting the costs to sell. The non-current asset shall be assessed in the recoverable service amount, which is the higher of these both values. If it is impossible to determine the fair value of the non-current asset, the value in use shall be determined as the recoverable service amount of the non-current asset.

[29 March 2011]

37. If the recoverable service amount of a non-current asset on the balance sheet date is lower than the carrying (remaining) amount thereof and the impairment, which is determined as the difference between the carrying amount and the recoverable service amount, is anticipated to last longer than a year, the non-current asset shall be assessed according to the lowest value. If it is impossible to determine the recoverable service amount, the impairment loss of the asset need not be determined.

[16 October 2012]

38. The impairment of non-current assets shall be accounted in the composition of the groups of depreciation and amortisation accounts, recognising other expenditures. Following recognition of the impairment of a non-current asset the depreciation (amortisation) shall be continued to be calculated for it, systematically attributing the carrying (remaining) amount of the non-current asset to the remaining useful life thereof.

39. At the end of each reporting period (financial year, unless laid down otherwise in the laws and regulations regarding the preparation of statements) a budget institution shall assess if there are any features which indicate that the impairment of non-current assets recognised in the previous reporting periods do not exist anymore or have decreased. The budget institution shall evaluate the following features:

39.1. demand for the service, which is provided by the budget institution using the relevant non-current asset, has substantially increased or has been restored;

39.2. the government or local government has taken a decision that causes substantial favourable changes in the operation of the budget institution;

39.3. during the reporting period improvements in or restoration of the non-current asset have been performed, in order to improve the operation of the non-current asset;

39.4. substantial non-current changes have occurred in the anticipated utilisation of the non-current asset, which have a favourable effect on the operation of the budget institution;

39.5. a decision to resume the construction of non-current asset, which had been halted prior to the completion or putting into use (service) thereof, has been taken.

40. If at least one of the features referred to in Paragraph 39 of this Regulation exists, a budget institution shall perform the activities referred to in Paragraphs 28, 30, 31, 36 and 37 of this Regulation anew.

41. If the impairment of a non-current asset has become lesser or does not exist anymore, the carrying (remaining) amount of the non-current asset shall be increased by reversal of an impairment loss and recognising other income. The increased carrying (remaining) amount of a non-current asset may not exceed the carrying amount that would have been determined (deducting the amortisation and depreciation), if no impairment loss had been recognised for the non-current asset in the prior periods.

42. After a reversal of impairment loss of a non-current asset is recognised, the depreciation (amortisation) shall be continued to be calculated, systematically allocating the carrying (remaining) amount of the non-current asset over to its remaining useful life.

43. The formed impairment loss of the non-current asset may be adjusted only for the reversal of an impairment loss of the particular non-current asset.

44. When derecognising a non-current asset, for which the impairment has been performed, other expenditures in the carrying (remaining) amount of the non-current asset shall be recognised by derecognising the formed impairment loss, which relates to the excluded non-current asset, as well.

45. Biological and underground assets shall be initially recognised at the acquisition or construction cost. When initially recognising forest stands not accounted previously, except for the acquired ones, or when receiving them as a gift, the forest stands shall be assessed according to the data of the State Forest Register.

[16 October 2012]

46. When performing a forest inventory in conformity with the Law On Forests, the cost of the forest stands shall be updated according to the data of the State Forest Register:

46.1. if the carrying amount of the forest stand is lower than the full value disclosed in the State Forest Register, the increase in the value of the forest stand shall be recognised in other revenues;

46.2. if the carrying amount of the forest stand is greater than the full value disclosed in the State Forest Register, the carrying amount shall be reduced and recognised in other expenditures;

46.3. if the forest stand has initially been recognised in the account "Other Reserves", the reduction of the carrying amount shall be attributed to other reserves. The other reserves may be reduced only for the amount included in the other reserves of the definite forest stand.

[29 March 2011]

46.1 Forest stands shall be derecognised and in the value thereof:

46.1 1. other expenditures shall be increased, if the forest stand has been initially recognised in other revenues;

46.1 2. other reserves shall be reduced, if the forest stand has been initially recognised in other reserves.

[29 March 2011]

47. If features that attest to impairment have been detected for a previously revalued non-current asset, the impairment loss of such non-current asset shall be attributed to the revaluation reserve of the non-current asset. The revaluation reserve of non-current assets may be reduced only by the amount of the revaluation reserve of the definite non-current asset. If the revalued non-current asset is excluded from the accounting, the revaluation reserve of the non-current asset, which relates to the excluded asset, shall be recognised in other revenues of the reporting period.

[29 March 2011]

48. The costs, which improve the condition of the relevant property, plant and equipment or intangible asset (the reconstruction, improvement or renewal of the property, plant and equipment or intangible asset) during its useful life or substantially change the features of the present property, plant and equipment or intangible asset in comparison with the previous indicators thereof, shall be included in the cost of the property, plant and equipment or intangible asset (capitalised).

[29 March 2011]

49. A budget institution, when including capitalised costs in the value of a property, plant and equipment or intangible asset, shall increase the initial cost of the property, plant and equipment or intangible asset. Starting from the next month, the depreciation (amortisation) shall be calculated from the new carrying amount of the property, plant and equipment or intangible asset.

[29 March 2011]

50. A budget institution, when performing capital investments in State and local government properties, which have been transferred for holding to the State or local government capital companies, port administrations or derived public persons, shall increase the initial cost thereof for the part of the capital investments of the State or local governments. The part of the capital investments performed by capital companies, port administrations or derived public persons in the properties received for holding shall not be recognised in the accounting of a budget institution.

[16 October 2012]

51. Property, plant and equipment that consist of component parts (including reserve parts and service equipment), which may not be used separately, shall be accounted as one property, plant and equipment.

52. Property, plant and equipment that consist of component parts, which may be used separately (for example, computer system block, monitor, printer), shall be accounted as separate property, plant and equipment.

53. [16 October 2012].

54. If a long-life part of the property, plant and equipment is replaced with a new component part, which cannot be used separately, the value of the newly installed part shall be added to the value of the relevant property, plant and equipment. The initial cost of the replaced part and the calculated depreciation shall be derecognised.

[29 March 2011]

55. If the carrying amount of the replaced part of a property, plant and equipment has not been calculated separately, i.e. if the part of the property, plant and equipment to be excluded is not depreciated separately from the rest of the property, plant and equipment, the commission approved by the head of the budget institution shall, inviting experts of the relevant field, where necessary, determine the value of the part of the property, plant and equipment to be derecognised according to the depreciated replacement cost. The depreciated replacement cost shall be the value of the property, plant and equipment, which is calculated by deducting from the acquisition cost of a new equivalent property, plant and equipment the depreciation according to the depreciation rate of the replaced property, plant and equipment, accounting the depreciation as long as the budget institution had been using the replaced property, plant and equipment.

56. The costs that have occurred when preserving or maintaining the present condition of property, plant and equipment, as well as when repairing or fixing the property, plant and equipment, shall be recognised as the basic activity expenditure in the period, during which such expenditure has occurred.

57. [16 October 2012].

58. When acquiring a used property, plant and equipment that may be used for the intended purpose only after reconstruction, improvement or renewal, the relevant costs shall be added to the carrying amount of the property, plant and equipment in such amount so that the carrying amount of the property, plant and equipment would not exceed the value of an equivalent property, plant and equipment necessary for the replacement thereof after adding of these costs.

59. Non-current assets that are intended for alienation (except for transfer without consideration to budget institutions) shall be accounted in the composition of current assets until the alienation thereof. Non-current assets shall be accounted as intended for alienation, if in the current condition they are accessible for immediate alienation and are subject to the alienation provisions specified in laws and regulations, their useful utilisation is ceased and the alienation thereof is probable. The alienation of a non-current asset shall be considered to be probable, if the following conditions are in force:

59.1. the alienation is justified by a law or regulation or a decision of the institution management;

59.2. the alienation process has been commenced;

59.3. there is assurance that the alienation process will be completed.

[16 October 2012]

60. Calculation of depreciation (amortisation) shall be ceased for non-current assets intended for alienation (except for transfer without consideration to budget institutions).

[16 October 2012]

61. Assets that are intended for alienation (except for transfer without consideration to budget institutions) shall be accounted in the composition of current assets in the remaining amount thereof.

[29 March 2011]

62. Non-current assets intended for alienation, which are accounted in the composition of the current assets, shall be renewed in the composition of non-current assets, if due to unforeseen (or previously unexpected) circumstances the alienation process is not completed and there is a decision of the management to continue the utilisation of the assets intended for alienation in order to ensure the operation of the budget institution. An asset intended for alienation shall be renewed in the composition of non-current assets in the remaining amount and depreciated (amortised) in the remaining useful life according to the previously determined residual life, starting from the next month after renewal of the asset in the composition of non-current assets.

63. If non-current assets are liquidated or alienated (sold, changed, invested in a capital company or transferred without consideration (except for the transfer without consideration between budget institutions) and, thus, the property rights are transferred from the alienator of the property to the acquirer of the property) or destroyed due to an illegal act, a budget institution shall derecognise the non-current assets and recognise the carrying (remaining) amount of the non-current asset:

63.1. in other expenditures - when liquidating or derecognising assets due to an illegal act;

63.2. in expenditures from the transfer of valuables without consideration - when transferring assets without consideration to another person;

63.3. in the composition of inventories - when selling or investing assets in a capital company.

[29 March 2011]

64. The classification of non-current asset leases shall be based on the extent to which risks and rewards incident to ownership of a leased asset lie with the lessor and lessee. The classification shall be determined by the substance of the transaction, not by the legal form of the contract. The lease shall be classified as the finance lease (leasing) or the operating lease.

65. A lease shall be classified as the finance lease, if it meets at least one of the following conditions:

65.1. the lease transfers ownership of the asset to the lessee by the end of the lease term;

65.2. the lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised;

65.3. the lease period is at least 75% from the useful life of the asset, which is determined according to the useful life laid down in the laws and regulations regarding the depreciation norms of budget institutions, even in cases when the property rights are not transferred;

65.4. at the inception of the lease the present value of the minimum lease payments amounts to at least 90% from the fair value of the leased asset;

65.5. the leased assets are of such a specialised nature that only the lessee can use them without major modifications.

66. A lease shall be classified as the finance lease also in cases, if it meets at least one of the following conditions:

66.1. the lessee can cancel the lease, settling the lessor's losses associated with the cancellation of the lease;

66.2. gains or losses from the fluctuation in the fair value of the asset apply to the lessee;

66.3. the lessee has the ability to continue the lease for a secondary period at a rent that is substantially lower than market rent.

67. In exceptional cases a lease shall be classified as an operating lease, if in addition to any of the conditions referred to in Paragraph 65 or 66 of this Regulation it is clear from other features that the lease does not transfer all risks and rewards incidental to ownership.

68. A lease shall be classified at the date of inception of the lease. If during the lease term the provisions of the lease are amended, in a manner that would have resulted in a different classification of the lease, if the changed provisions had been in effect at the inception of the lease, then the revised agreement shall be regarded as a new agreement over its term.

69. Depreciation (amortisation) for property, plant and equipment and intangible assets that are purchased according to the finance lease (leasing) provisions shall be calculated according to the same provisions that are applicable to other assets of the same group.

70. Property, plant and equipment and intangible assets that are acquired within the framework of an operating lease shall be accounted in a sub-balance sheet according to the value determined in the lease agreement or by the commission approved by the head of the budget institution (inviting experts of the relevant field, where necessary).

[16 October 2007]

71. Expenditures for a lease shall be accounted according to the classification of the lease transaction:

71.1. if the lease has been classified as a finance lease (leasing), the lessee shall, at the inception of the lease, recognise both the leased asset in the composition of the non-current assets, and the non-current and short-term liabilities in the amounts of the payable lease payments, which are equivalent to the fair value of the leased asset or the present value of the minimum lease payments, if it is lower;

71.2. if the lease has been classified as an operating lease, the expenditures for the lease shall be recognised in the basic activity expenditure according to the accrual principle, recognising expenditures in the reporting period, when they have occurred, regardless of the cash payment.

72. A leased asset accounted in accordance with Sub-paragraph 71.1 of this Regulation, the value of which at the accounting date has decreased, shall be assessed according to the lowest value in accordance with Paragraphs 28, 30, 31, 36 and 37 of this Regulation.

[16 October 2012]

73. If a budget institution, when performing a property investment, obtains capital shares of a capital company, then:

73.1. according to the decision of the budget institution management the definite asset shall be excluded from the composition of the non-current assets and shall be recognised in the composition of the current assets in the remaining amount of the asset;

73.2. according to the deed of delivery and acceptance the asset shall be excluded from the composition of the current assets and shall be recognised in the relevant other expenditures;

73.3. the acquired capital shares of the capital company shall be recognised in the financial investments and financial revenues at the fair value of the capital shares;

73.4. if a revaluation reserve has been previously recognised for the property investment, the revaluation reserve shall be excluded and the financial revenues shall be recognised.

[29 March 2011]

74. If a budget institution obtains capital shares of a capital company by capitalising taxes, the acquisition cost of the capital shares shall be the amount of the capitalised taxes.

75. Budget institutions shall measure investment in the related and associated capital companies and present such investment in the balance sheet according to the cost method or the equity method.

76. Investment in related and associated capital companies according to the cost method shall be accounted in the acquisition cost thereof. The acquisition cost shall not include costs of professional services.

77. If the cost method is used:

77.1. the dividends of a capital company approved but not received in the reporting year in proportion to the investment share and other payments for the use of non-current financial investments shall be accounted as receivables of the sub-balance sheet;

77.2. the dividends paid by a capital company in the reporting year in proportion to the investment share and other payments for the use of non-current financial investments shall be included in the budget revenues in accordance with the procedures laid down in the laws and regulations in the field of budget and finances. The cash received shall be recognised by the budget institution in other financial revenues and the receivables accounted in the sub-balance sheet shall be reduced at the amount of received cash;

77.3. the impairment of non-current financial investments shall be assessed and accounted in accordance with Paragraphs 28, 30, 31, 36 and 37 of this Regulation;

77.4. and if in accordance with the procedures laid down in the laws and regulations in the field of budget and finances a ministry of another sector or local government has made an investment in a capital company, then such an investment in the capital company shall be accounted by such a ministry or local government, which is the holder of the shares in the capital company, recognising other financial revenues and increasing the carrying amount of the financial investment for the relevant amount of the investment;

77.5. when increasing the par value of one share, the carrying amount of the financial investment shall be increased and other financial revenues shall be recognised. When reducing the par value of one share, the carrying amount of the investment shall be reduced and other financial expenses shall be recognised;

77.6. an investment in a capital company shall be reduced:

77.6.1. when receiving the previously made property investment back. A financial investment shall be reduced for the fair value of the reduction of share and other financial expenses shall be recognised. The asset received shall be assessed by the commission approved by the head of the budget institution (inviting experts of the relevant field, where necessary), by using generally recognised evaluation methods or the methods referred to in Paragraphs 32, 33, 34 and 35 of this Regulation, and the revenues from the initial recognition of the relevant asset shall be recognised;

77.6.2. when receiving the previously made cash investment back. A financial investment shall be reduced for the amount of the cash received.

[29 March 2011; 16 October 2012]

78. The investment in the capital of related and associated capital companies according to the equity method shall be initially - at the date of acquisition (purchase) - measured and recorded according to the acquisition costs. If on the day of acquisition of an investment the acquisition costs exceed the investor's share of the fair values of the net assets, liabilities or contingent liabilities of the investment shares in the related or associated capital company:

78.1. the positive exceedance shall be included in the carrying amount of the investment. At the end of each reporting year this amount shall be assessed in accordance with Paragraphs 27, 28, 30, 31, 32, 33, 34, 35, 36, 37 and 38 of this Regulation. If the recoverable service amount is lower than the exceedance value, the impairment loss thereof shall be assessed and recorded in the financial expenses of the reporting period;

78.2. the negative exceedance shall be recognised in financial revenues in the reporting period, in which the negative exceedance occurs.

[29 March 2011]

79. If the equity method is used, the budget institution shall:

79.1. at the end of each reporting year increase or decrease carrying amount of the investment in related and associated capital companies according to the changes of the value of the investor's share in the equity of the capital company in the reporting year, using the information disclosed in the annual report of the capital company. The provisions referred to in Sub-paragraph 79.3 of this Regulation shall be taken into account in calculations. The carrying amount at the end of the reporting period shall be determined by multiplying the equity of the reporting year of the capital company by the percentage of shares belonging to the State or local government. If the financial statement for the reporting year of the capital company is not available, the last financial statement available shall be used and changes of the carrying amount shall be adjusted for the transactions carried out and other changes that occurred within the time period between the date of the last financial statement of the capital company and the date when the financial statement is prepared by the holder of the capital shares;

79.2. account the increase or reduction of the carrying amount of an investment in the equity of a capital company, taking into account the changes that have occurred in the reporting year, as financial revenues or expenditures of the reporting year and changes in non-current financial investments. If the capital company has a negative equity, the investment of a budget institution in such capital company shall be reduced to zero and hereinafter losses from the investment in the capital company shall not be recognised;

79.3. if changes, which were not included in the profit or deficit of the capital company, have occurred in the equity of the capital company (revaluation of assets, which is immediately included in the equity of the capital company), recognise investor's share of these changes in other reserves of the equity of the budget institution, as well as account as changes in non-current financial assets.

[29 March 2011]

79.1 In the reporting year the dividends received from a capital company in proportion to the investment share and other payments for the use of non-current financial investments shall be accounted as reduction in the investment cost, if the investment is accounted according to the equity method and:

79.1 1. State budget institutions recognise financial expenditures;

79.1 2. local governments recognise cash.

[29 March 2011]

80. Financial investments, the time period of which does not exceed one year from the balance sheet date, shall be calculated, carried over and disclosed separately at the end of the year. Financial investments, which can be sold at any time and which are intended to be sold within the time period of the following 12 months, shall be disclosed as short-term financial investments.

81. Receivables, the repayment (extinguishment) of which according to the initial (contractual) provisions exceeds one year from the balance sheet date, shall be accounted in non-current receivables. The short-term part of non-current receivables shall be calculated, carried over and disclosed separately at the end of the year.

[16 October 2012]

82. If non-current assets are sold, the budget institution shall recognise other expenditures in the carrying amount of the relevant non-current asset and other revenues in the amount of the consideration received. If revenues from the selling of a non-current asset are included in the State budget revenues, the liabilities in favour of the budget shall be recognised.

[16 October 2012]

2.1.1 Calculation of the Depreciation of Property, Plant and Equipment and Provisions for the Application of Norms

[29 March 2011]

82.1 The depreciation of property, plant and equipment shall be calculated in conformity with the periods of preparation of reports, but not less than once in a reporting year.

82.2 Depreciation shall not be calculated for land, biological and underground assets, library funds, objects of culture and art, precious stones, precious metals and their products, valuables and the cultural monuments included in the list of State protected cultural monuments.

[16 October 2012]

82.3 The straight-line method shall be used for the calculations of the depreciation of property, plant and equipment, systematically reducing the cost (the initial cost or the amount obtained during revaluation) of the property, plant and equipment by even deductions during the useful life of the property, plant and equipment.

82.4 The calculation of the depreciation of property, plant and equipment shall begin with the first day of the following month after putting the property, plant and equipment into service and end with the first day of the following month after termination of the property, plant and equipment use, derecognition or complete inclusion of the cost in the calculation of the depreciation.

82.5 The depreciation of property, plant and equipment shall be calculated only until a complete write-off of the cost thereof (the initial cost or the value specified during revaluation). If the utilisation of the property, plant and equipment is continued after complete inclusion of the cost thereof in the calculation of depreciation, the calculation of depreciation shall be terminated, but the property, plant and equipment shall be kept in the accounting.

82.6 The calculation of depreciation shall also be continued during technical maintenance, repair and reconstruction of property, plant and equipment.

82.7 Depreciation of property, plant and equipment after reconstruction, improvement or renewal thereof shall be calculated during the remaining or revised useful life.

82.8 When carrying out the reconstruction, improvement or renewal of property, plant and equipment after which the useful life of the property, plant and equipment changes significantly, the remaining useful life of the property, plant and equipment may be revised by adjusting the calculation of the depreciation of the property, plant and equipment for the current period and the subsequent periods accordingly.

82.9 The useful life of property, plant and equipment that are included on the balance sheets of budget institutions and that are newly purchased (or otherwise obtained) and the corresponding depreciation norms shall be determined in accordance with the property, plant and equipment categories, groups and sub-groups laid down in Annex 2 to this Regulation.

82.10 When recognising a used property, plant and equipment, except for the transaction referred to in Paragraph 82.11 of this Regulation, a commission established by the budget institution and, if necessary, invited specialists of the relevant field shall determine the technical condition of the property, plant and equipment, the expected remaining useful life and the relevant depreciation norms thereof. The evaluation shall be documented.

[16 October 2012]

82.11 If a property, plant and equipment is received without consideration from a budget institution, the property, plant and equipment shall be continued to be used during the remaining useful life and in conformity with the depreciation norm, on the basis of the received information regarding the property, plant and equipment.

2.2. Accounting of Current Assets

83. Current assets are assets, which a budget institution intends to use within the time period of one year or payment of which is intended within the time period of one year from the balance sheet date. Also the following shall be accounted in the composition of current assets:

83.1. assets, if the initial recognition cost of one asset is lower than the value laid down in the laws and regulations in the field of the classification of budget expenditures;

83.2. agricultural produce and State strategic reserves;

83.3. specialist military equipment (irrespective of useful life);

83.4. non-current assets that are intended for alienation.

[29 March 2011]

84. Current assets shall be divided into the following groups:

84.1. inventory;

84.2. debtors (receivables);

84.3. expenditures of the subsequent periods and prepayment for services and projects;

84.4. short-term financial investments;

84.5. cash;

84.6. financing of administered institutions.

85. Current assets shall be initially measured according to the acquisition or manufacturing cost:

85.1. the acquisition cost shall be calculated by adding the expenditures related to the purchase to the acquisition cost of the assets;

85.2. the manufacturing cost shall be calculated by summing up the utilisation of the raw materials and materials according to the acquisition costs and the product manufacturing costs. Sales costs shall not be included in the manufacturing cost.

86. Inventory shall be short-term assets of a budget institution that are intended for ensuring the operation thereof, alienation, and are or will be utilised in the form of raw materials during the economic activity process, as well as the types of assets referred to in Sub-paragraphs 83.1, 83.2 and 83.3 of this Regulation.

[29 March 2011]

86.1 A budget institution, which transfers inventory to another budget institution without consideration, shall provide information regarding the accounting of the inventory (details of the affiliation of the inventory to the accounting category up to the sub-group, cost of the inventory, impairment loss, relevant indication and amount, if the amount of the inventory has been initially recognised in the revenues of the subsequent periods).

[29 March 2011]

86.2 A budget institution shall, when transferring inventory to another budget institution without consideration, derecognise:

86.2 1. the cost of the inventory and impairment, and shall recognise expenditures from values transferred without consideration in the remaining amount of the inventory according to the essence of the transaction (transfer of inventory to another budget institution, institution subordinate thereto, State or local government institution);

86.2 2. revenues of the subsequent periods, which relate to such inventory, and shall recognise revenues from values transferred without consideration.

[29 March 2011]

86.3 A budget institution that receives inventory from another budget institution without consideration shall recognise the following in the accounting:

86.3 1. the cost of the inventory, impairment and revenues from the values received without consideration according to the information received and the essence of the transaction (receipt of inventory from another budget institution, institution subordinate thereto, State or local government institution);

86.3 2. the value of the inventory, impairment and revenues of the subsequent periods, if in the previous budget institution the value of the inventory was initially accounted in the revenues of the subsequent periods;

86.3 3. the value of the inventory in such accounting category that has been disclosed by the previous budget institution, except for specialist military equipment. If necessary, the abovementioned values shall be re-classified in conformity with the accounting procedures of the budget institution. If the budget institution receives without consideration inventory that were accounted by the previous budget institution in the group of accounts "2170 Specialist military equipment and construction of specialist military equipment", the value of such inventory shall be recognised in an accounting category conforming to the economic essence of the inventory.

[29 March 2011; 16 October 2012]

86.4 A budget institution shall, when transferring without consideration to another budget institution inventory that was previously recognised in expenditures, exclude them from the accounting in quantitative units. A budget institution that receives such inventory shall ensure their accounting in quantitative units until the actual writing-off thereof.

[29 March 2011]

86.5 A budget institution shall, when transferring the State and local government inventory owned and possessed by the budget institution for holding to State or local government capital companies, port administrations or derived public persons, account the cost thereof in a separate account in the composition of inventory.

[16 October 2012]

87. [29 March 2011].

87.1 Impairment for the inventory which do not differ from property, plant and equipment by their functions but which do not conform to the initial recognition criteria of property, plant and equipment (inventory) and which have not been put in use shall be assessed in accordance with Paragraphs 27, 28, 29, 30, 31, 31.1, 32, 33, 34, 35, 36, 37 and 38 of this Regulation, while the reversal - in accordance with Paragraphs 39, 40 and 41 of this Regulation.

[29 March 2011]

87.2 The impairment of inventory referred to in Paragraph 87.1 of this Regulation shall be accounted in a separate account in the composition of the inventory group, recognising other expenditures.

[29 March 2011]

88. [29 March 2011]

89. [29 March 2011]

90. At the end of each reporting year a budget institution shall assess replacement costs for the inventory that are intended for ensuring the functions of an institution (except for the types of inventory referred to in Sub-paragraphs 83.1 and 83.3 of this Regulation), distribution at no charge or for a nominal charge, as well as for manufacturing of such inventory, if they have not been put in use or utilised. If replacement costs of the inventory are lower than the acquisition cost of such inventory, the budget institution shall account the inventory according to the replacement cost, derecognising in other expenditures the difference that occurs between the acquisition cost and replacement cost.

[29 March 2011]

90.1 If the inventory referred to in Paragraph 90 of this Regulation is damaged, completely or partially outdated, at the end of the reporting year the budget institution shall determine the fair value of such inventory in accordance with Paragraph 29 of this Regulation. If the fair value of such inventory is lower than the acquisition cost thereof, the inventory shall be accounted in the fair value, derecognising in other expenditures the difference that occurs between the acquisition cost and fair value (deducting the costs to sell). If it is impossible to determine the fair value of such inventory, the inventory shall be accounted in the acquisition cost thereof until the writing-off.

[29 March 2011; 16 October 2012]

90.2 At the end of the reporting year a budget institution shall determine the fair value of non-current assets and inventory intended for alienation (except for the transfer without consideration to another budget institution) and, if the fair value of such inventory is lower than the acquisition cost thereof, the inventory shall be accounted in the fair value, derecognising in other expenditures the difference that occurs between the acquisition cost and fair value (deducting the costs to sell).

[29 March 2011]

91. If inventory intended for ensuring the functions of a budget institution are utilised or written off, the budget institution shall derecognise the inventory, derecognising their cost in the expenditures of a reporting period. Inventory shall be derecognised, assessing them according to the "first in - first out" (FIFO) method.

[29 March 2011]

92. Inventory (except for specialist military equipment) shall be recognised in the basic activity expenditures in the period when they are put in use or written off. A budget institution shall ensure the accounting of inventory (in quantitative units) also after their recognition in expenditures until the actual writing-off thereof. Heating fuel, fuel and lubricants shall be recognised in the basic activity expenditures in the period in which they are actually used.

[29 March 2011]

92.1 When derecognising non-current assets intended for alienation and when selling inventory, a budget institution shall derecognise them and recognise their cost in the relevant other expenditures.

[29 March 2011]

92.2 When derecognising the inventory referred to in Paragraph 87.1 of this Regulation, for which impairment has been previously recognised, the basic activity expenditures shall be recognised in the carrying amount of the inventory, excluding the recognised impairment as well.

[16 October 2012]

93. Specialist military equipment shall be accounted and written off in accordance with the procedures laid down in the Cabinet instructions.

94. Agricultural produce shall be assessed in the acquisition cost, if they have been acquired for payment, or at the production cost.

95. Agricultural produce shall be recognised in expenditures on the day when the revenue related to these assets is obtained, at the date of alienation or when liquidating them.

96. If inventory is sold, the receivables shall be recognised in the amount of consideration on the sales day and the sales revenue shall be disclosed, classifying such revenue according to the budget revenue classification.

97. At the end of the reporting period a budget institution shall assess receivables and prepayments, and consider them to be unsafe (doubtful), if:

97.1. the deadline for the payment of receivables or settlement of advance conditions has been missed for 90 days and more;

97.2. there is a disagreement regarding repayment of receivables or settlement of the agreement, for which an advance has been made;

97.3. an insolvency case has been initiated in favour of the debtor;

97.4. there are justified reasons for doubting the recovery of the debt.

98. Budget institutions shall recognise impairment loss in the doubtful amount of receivables and prepayments that have been assessed as unsafe (doubtful). The recognised impairment loss shall be recognised in other expenditures of the reporting period. Receivables and prepayments shall be disclosed in the balance sheet in the net value which is calculated by subtracting the impairment loss from the carrying amount in conformity with accounting data.

99. A budget institution shall, at the end of each reporting period, assess whether there is an objective evidence for the receipt of receivables and prepayments, evaluating (if it is possible) every debtor and every transaction. If such proof exists, impairment loss shall be assessed in the amount of the unsafe (doubtful) sum or in percentage from the debt value.

100. Receivables the collection of which is impossible according to legal norms, because a debtor has been liquidated or has died, or the period for the debt collection has expired, shall be derecognised and recognised in other expenditures, and the impairment loss shall be reduced, recognising revenue from the reduction of the impairment loss.

[29 March 2011]

101. Impairment loss need not be provided for receivables and prepayments before the deadline for their receipt or the date of settlement of conditions (delivery of goods, rendering of a service) has been reached.

102. If the evidence referred to in Sub-paragraph 97.1 of this Regulation is in effect, receivables and prepayments shall be divided into groups according to the missed payment or settlement deadlines, and according to them the amount of impairment loss shall be determined for:

102.1. debts, the receipt or settlement deadline of which has been missed for 91-180 days, impairment loss shall be made in the amount of 25% of the debt value;

102.2. debts, the receipt or settlement deadline of which has been missed for 181-270 days, impairment loss shall be made in the amount of 50% of the debt value;

102.3. debts, the receipt or settlement deadline of which has been missed for 271-365 days, impairment loss shall be made in the amount of 75% of the debt value;

102.4. debts, the receipt or settlement deadline of which has been missed for more than 365 days, impairment loss shall be made in the amount of 80% of the debt value.

103. If the evidence referred to in Sub-paragraphs 97.2, 97.3 and 97.4 of this Regulation is in effect, impairment loss shall be made immediately in the amount of the doubtful sum.

104. Having assessed the risk of non-repayment of receivables and prepayments and having concluded that the initially recognised impairment loss are not required, a budget institution shall reduce impairment loss and recognise other revenues from the reduction of impairment loss.

105. If during the reporting period a receivable or paid advance, for which impairment loss has been established initially, is repaid, a budget institution shall reduce the impairment loss and recognise other revenues from the reduction of the impairment loss, as well as shall reduce the receivable or advance and recognise the cash received.

[29 March 2011]

105.1 If during the reporting period a receivable or paid advance, for which impairment loss have been established initially, is extinguished, a budget institution shall reduce the impairment loss and recognise other revenues from the reduction of the impairment loss, as well as shall reduce the relevant receivable or advance and recognise other expenditures.

[29 March 2011]

106. Receivables shall be classified in short-term and non-current receivables on the day they have occurred:

106.1. amount of receivables, which will be repaid within the framework of the usual activity cycle of a budget institution or the time period for repayment of which at the end of the reporting period will not exceed one year from the balance sheet date, shall be classified in short-term receivables (debtors);

106.2. receivables the intended repayment of which exceeds one year from the balance sheet date shall be classified in non-current receivables;

106.3. at the end of the reporting period (year) the short-term part of non-current receivables shall be calculated and disclosed in the composition of debtors.

107. Revenues of a budget institution which, according to the agreements entered into, relate to previous periods but the term of receipt of which has not been reached yet or regarding which an accounting document of receivables (corroborative document) has not been recorded shall be accounted in the composition of debtors (receivables) as accrued revenues.

[16 October 2012]

108. Short-term financial investments shall be investments, which can be sold at any time and which are intended to be kept for a time period not exceeding one year, as well as financial investments, which are intended to be sold and which are re-classified as short-term investments. Such short-term financial investments shall be disclosed in the composition of current assets in financial reports.

109. Securities included in short-term financial investments and quoted on a stock exchange, which are subject to exchange fluctuations in a recognised stock exchange, may be assessed according to the exchange rate on the balance sheet date. Basic activity revenues or expenditures shall be recognised according to changes of the fair value.

110. Loan interest revenue and liability payment revenue according to the loan agreements entered into regarding the unutilised amount of the loan shall be accounted in the loan currency according to the accrual principle, recognising the financial revenues in the period when they are earned, irrespective of the receipt of cash (accrued revenue of the liability payment and interest). On the day of the receipt of cash such revenues shall be allocated to the interest and liability payment revenues accumulated previously.

[29 March 2011]

111. Assessment of the loan non-repayment risk shall be performed at the end of the reporting period, but not less than once a year. If a risk is detected that the loan will not be repaid or will not be repaid in the full amount, impairment loss for such debts in the amount of the unsafe (doubtful) sum shall be recognised.

112. At the end of the reporting period a budget institution shall separately disclose impairment loss for non-current and short-term receivables.

113. If it is provided in the relevant laws and regulations that a loan or part of the loan will not be repaid (extinguished), or part of the accumulated interests will not be reclaimed, the relevant amount shall be derecognised in financial or other expenditures.

[29 March 2011]

114. A contractual penalty or interest payments received for non-settlement of liabilities (hereinafter - contractual penalty) and a fine shall be accounted in the sub-balance sheet from the day when a budget institution acquires lawful rights to collect the relevant contractual penalty and fine, while in the balance - from the day when the receipt of the contractual penalty and fine is surely probable.

[16 October 2012]

115. A received fine and contractual penalty shall be accounted as basic activity revenues on the day when they are received in the current account of the budget institution.

[16 October 2012]

116. When receiving a corroborative document regarding prepayments, it shall be accounted as sub-balance sheet liabilities until the day of payment. Each type of prepayments or expenditures of the subsequent periods shall be accounted analytically.

[16 October 2012]

117. The prepayments shall be classified in the composition of such group of assets, for which the prepayments have been paid. An advance for the acquisition of an asset shall be classified in the same group of the balance sheet accounts, where the acquired asset will be accounted after the settlement of the transaction. Prepayments for intangible assets, prepayments for acquisition of property, plant and equipment, prepayments for financial investments and prepayments for inventory shall be disclosed separately. Other prepayments shall be classified together with the part of current assets.

118. Payments recognised in the account of the expenditures of the subsequent periods shall be included in the basic activity expenditures according to the accrual principle, recognising the expenditures in the period, to which they are related. Expenditures shall be recognised when a budget institution has received a service. Expenditures of the subsequent periods shall be derecognised at least once in the reporting period.

119. If services for which a prepayment was made are received in parts or during several months, the expenditures of the subsequent periods paid shall be recognised in parts in the relevant account of the basic activity expenditures. An amount to be recognised in expenditures shall be such part of the expenditures of the subsequent periods, which is proportionally applicable to the particular period.

2.3. Accounting of Equity

120. Equity (net assets) shall be the residual interest in assets of a budget institution after deduction of all the liabilities thereof.

121. Equity shall be classified into the following groups:

121.1. reserves;

121.2. accumulated surpluses or deficits of the budget of the previous reporting years;

121.3. accumulated surplus or deficit of the budget of the reporting year.

122. A revaluation reserve of non-current assets shall be formed from the revaluation of non-current assets of the budget institution.

123. Other reserves shall be recognised, if the assessment of financial investments takes place according to the equity method and there are such changes in the equity of a capital company, which are not recognised in the profit or loss calculation of such capital company. Other reserves shall also include the initial recognition values of forest stands in the accounting of a budget institution according to the data of the State Forest Register. The budget institution shall provide in reports a detailed explanation of changes of other reserves.

124. The accumulated surplus or deficit of the budget of the previous reporting years and the accumulated surplus or deficit of the budget of the reporting year shall be accounted in breakdown by the types of budgets.

2.4. Accounting of Provisions, Contingent Liabilities and Contingent Assets

125. Provisions are intended for settling liabilities that relate to the transactions of the reporting year or the previous years and that are anticipated or known at the time of preparation of the report, but the value of which or the date of occurrence or settling of particular liabilities is not known precisely.

126. Provisions need not be recognised if they occur in relation to social services rendered by a budget institution, for which consideration, which is approximately equal to the value of the rendered services, is not received from recipients of such services directly. Provisions shall not be recognised for pensions and other types of State benefits.

127. Impairments of receivables and prepayments shall be adjustments of the value of assets, the accounting of which is laid down in Paragraph 98 of this Regulation.

128. Clearly known amount of settlement of accounts with suppliers and contractors regarding the goods or services received in the reporting year, if on the last day of the reporting period the relevant accounting document has not been received yet, shall not be recognised as provisions, but as accumulated liabilities, the accounting of which is laid down in Paragraph 168 of this Regulation.

129. A budget institution shall recognise provisions only when all of the following conditions are met:

129.1. the budget institution has a present obligation (legal or constructive) as a result of a past event;

129.2. it is probable that an outflow of resources from the budget institution will be required to settle the obligation;

129.3. a reliable estimate can be made of the amount necessary to settle the obligation.

130. In order to determine whether a present obligation exists on the balance sheet date, the commission approved by the head of the budget institution, inviting experts of the relevant field, where necessary, shall evaluate the available evidence, as well as events after the balance sheet date:

130.1. where it is more likely than not that a present obligation exists on the balance sheet date, the budget institution shall recognise provisions in accordance with Paragraph 134 of this Regulation;

130.2. where it is more likely that no present obligation exists on the balance sheet date, the budget institution shall disclose information regarding a contingent liability in the sub-balance sheet. If the possibility of an outflow of resources is remote, information regarding this obligation need not be disclosed.

131. A decision of the budget institution management at the balance sheet date shall not create an obligation, unless persons affected by such decision have been notified thereof prior to the balance sheet date, thus, giving them a justified reason for expecting settlement of obligations of the budget institution.

132. Provisions shall not be recognised in the accounting of a budget institution for:

132.1. liabilities and costs that will occur in future;

132.2. net deficits that will occur due to the future activity of the budget institution and which are net deficits of the operating activities. Anticipated net benefits from future operating activities of a budget institution shall attest to the impairment of assets of the budget institution, and in such cases the verification of impairment of such assets shall be performed.

133. The following shall not be disclosed in the balance of a budget institution:

133.1. contingent liabilities in accordance with Paragraph 147 of this Regulation (information regarding contingent liabilities shall be disclosed in the sub-balance sheet of the budget institution);

133.2. contingent assets in accordance with Paragraph 149 of this Regulation, because the recognition thereof can create revenues, which will never be realised (information regarding contingent assets shall be disclosed in the sub-balance of the budget institution). Only in cases when revenues are virtually certain, an asset shall be recognised in the balance sheet and it shall no longer be considered as a contingent asset.

134. Provisions shall be recognised in the amount conforming to as precise as possible assessment of expenditures at the balance sheet date, which are determined by the commission approved by the head of the budget institution, inviting experts of the relevant field, where necessary. As precise as possible assessment shall be determined by applying generally recognised evaluation methods and carrying out the following activities:

134.1. determine as precise as possible assessment, i.e. the amount that a budget institution would justifiably pay in order to fulfil the present obligation at the balance sheet date or to transfer the settlement thereof to a third party at the balance sheet date;

134.2. perform assessment of the amount of provisions, using available information, evidence and experience. If it is impossible to carry out a reliable assessment of provisions, the provisions shall not be recognised, while information regarding contingent liabilities shall be disclosed in the sub-balance sheet;

134.3. when calculating as precise as possible assessment of provisions, the risks and uncertainties, which will affect the value of resources necessary for the settling of provisions, shall be taken into account;

134.4. if a budget institution has several uniform obligations (for example, contracts of guarantees), the amount necessary for settlement of the obligation shall be determined for the whole aggregate of such liabilities. Provisions shall also be recognised in cases when the probability of an outflow of resources for each separate case of liabilities is remote, while in general an outflow of resources is probable;

134.5. if the provisions to be assessed include a large population of items, then, in order for the present uncertainties to be taken into account in the assessment of the amount necessary for settlement of the present obligation, all the possible outcomes shall be calculated by their associated probabilities.

135. The amount of provisions may not exceed the necessary amount, which a budget institution would pay at the balance sheet day in order to settle the liabilities.

136. If it is anticipated that the expenditures related to settlement of an obligation will be completely or partially reimbursed by a third party, the budget institution shall evaluate its responsibility in favour of the liabilities and carry out the following activities:

136.1. if the budget institution is completely responsible for settlement of liabilities included in the obligation irrespective of whether the third party will or will not reimburse the expenditures, the budget institution shall recognise the provisions for the whole amount of the liabilities;

136.2. if the third party is completely responsible for settlement of the abovementioned liabilities (the budget institution is not responsible), the budget institution shall not recognise such liabilities as provisions;

136.3. if the budget institution is solidarily and separately responsible for the obligation, then the part of liabilities included in the obligation, which is intended to be reimbursed by another party, shall be disclosed as contingent liabilities. Provisions shall be recognised only for such part of an obligation that conforms to the conditions for recognition of provisions referred to in Paragraph 129 of this Regulation.

137. If it is intended that the expenditures necessary for settling the liabilities included in provisions will be completely or partially reimbursed by a third party, the reimbursement for the expenditures shall be recognised only when the expenditures have been reimbursed. The amount recognised for reimbursement for expenditures may not exceed the amount of provisions.

138. Expenditures related to provisions and revenues from the reimbursement for expenditures shall be disclosed separately, disclosing expenditures and revenues gained from the reimbursement for such expenditures.

139. The value of provisions shall be adjusted only in favour of such expenditures for which the provisions were recognised initially.

140. Provisions for restructuring costs of a budget institution shall be recognised only when the recognition criteria for provisions referred to in Paragraph 129 of this Regulation are met. Within the meaning of this Regulation a restructuring shall mean a plan for transforming a budget institution, which has been drawn up and is controlled by the budget institution management and which substantially changes either the scope of activity of the budget institution or the manner in which this activity is conducted.

141. In this Regulation the following events at a budget institution shall be considered to be restructuring of the budget institution operation:

141.1. termination of the type of activity;

141.2. the closure of the activity location in any of the regions or the relocation of the budget institution activity from one region to another;

141.3. significant changes in the management structure;

141.4. reorganisation that has a significant effect on the type of the budget institution activity.

142. A constructive obligation to restructure arises only when a budget institution has developed a detailed official plan for the restructuring, as well as has commenced implementation of this plan or has informed regarding the main features of this plan the persons who will be affected by the restructuring and who, therefore, have a justified reason to expect that the budget institution will conduct this restructuring. The plan for restructuring of a budget institution shall include at least the following information:

142.1. the budget institution activity or part thereof that will be affected by the restructuring;

142.2. the principal locations of the budget institution activity that will be affected by the restructuring;

142.3. the workplace, position, and approximate number of employees who will be reimbursed for terminating their services;

142.4. anticipated expenditures;

142.5. the time (deadlines) for the implementation of the plan.

143. If a budget institution starts to implement a restructuring plan or announces its main features to persons who will be affected by the restructuring, after the balance sheet date, but prior to the approval of the financial report, the budget institution shall disclose information regarding this restructuring in an annex to the financial report. If a restructuring is not so significant that non-disclosure of information would affect the ability of the financial report users to properly evaluate and make decisions, information regarding this restructuring is not required.

144. When assessing provisions of the restructuring costs of a budget institution, only direct expenditures that will occur as a result of the restructuring of the budget institution shall be taken into account. Direct costs shall be the costs that inevitably occur as a result of a budget institution restructuring and are not related to the present activity of the budget institution, and that are not related to the future activity of the budget institution.

145. When assessing provisions of the restructuring costs of a budget institution, gains on the expected alienation of assets, which is a constituent part of the restructuring plan of the budget institution, need not be taken into account. When assessing provisions of the restructuring costs, identifiable future activity losses need not be taken into account.

146. The information regarding provisions and contingent liabilities laid down in this Regulation shall be provided in breakdown by similar types of provisions and similar types of contingent liabilities according to the accounts and sub-balance sheet codes referred to in Annex 1 to this Regulation.

[29 March 2011]

147. Contingent liabilities (including guarantees) is:

147.1. a possible obligation of a budget institution, which has occurred as a result of past events and the existence of which depends on one or several occurrences or non-occurrences of such future events that cannot be controlled by the budget institution;

147.2. a present obligation of a budget institution, which has occurred as a result of past events, but it is not probable that an outflow of the budget institution resources will be required to settle the obligation, or a sufficiently reliable estimate of the amount of the obligation cannot be made.

148. If a budget institution has entered into contracts regarding future investments in property, plant and equipment or intangible assets and until the balance sheet date the performance of work has not been carried out, such liabilities shall be disclosed in the sub-balance sheet. The value of the liabilities shall be calculated by aggregating payments expected after the balance sheet date according to the contracts entered into.

149. A contingent asset is an asset, which can occur as a result of past events and the existence of which depends on one or several occurrences or non-occurrences of such future events that cannot be controlled by a budget institution.

2.5. Accounting of Creditors

150. Creditors are present liabilities (obligations) of a budget institution, arising from past events (transactions) and for the settlement of which the budget institution will have to use its resources (for example, payment of cash, transfer of other assets, rendering of services).

151. Creditors shall be classified into the following groups:

151.1. non-current liabilities;

151.2. short-term liabilities.

152. Short-term liabilities are liabilities, the payment of which is intended within a time period of one year after the balance sheet date. The following liabilities shall be disclosed in the balance sheet as non-current and short-term creditors:

152.1. borrowings;

152.2. debts to suppliers and contractors;

152.3. liabilities regarding foreign financial assistance;

152.4. settlements for work remuneration and deductions;

152.5. taxes and social insurance payments;

152.6. revenues of the subsequent periods and prepayments received;

152.7. prepaid transfers.

[16 October 2012]

153. At the end of the reporting period (year) a budget institution shall calculate and disclose separately the short-term and non-current parts of liabilities.

154. When receiving goods or services, a budget institution shall recognise non-current and short-term liabilities in favour of the suppliers and contractors according to the payment deadline.

155. [16 October 2012]

156. Expenditures of borrowing interests and liability payments for the granted, but unused amounts of borrowings shall be accounted according to the accrual principle, recognising the financial expenditures in the period, during which they have occurred, irrespective of whether the cash has or has not been paid.

157. A budget institution shall accrue and calculate the payments of borrowing interests and liabilities according to the borrowing agreements entered into. When calculating interest, it shall be recognised as financial expenditures in the reporting period and accounted as accumulated liabilities.

158. A contractual penalty and fine to be paid shall be accounted as expenditures of a budget institution on the day when the second party in the transaction acquires lawful rights to collect the contractual penalty and fine. The budget institution shall recognise basic activity expenditure and increase the accumulated liabilities.

[16 October 2012]

159. Accumulated liabilities for contractual penalties and fines to be paid shall be accounted until the day when they are paid. If the second party in a transaction does not have lawful rights to collect the relevant contractual penalty and fine any more, the accumulated liabilities shall be reversed, reducing the accrued contractual penalty and fine, and shall be recognised as the basic activity revenues.

[16 October 2012]

160. Financial (borrowings) servicing fees shall be recognised in the basic activity expenditures of a budget institution on the day when a corroborative document regarding the received services is received or in accordance with the provisions of the agreement.

[16 October 2012]

161. The interest payments of a finance lease (leasing) shall be recognised in financial expenditures of the budget institution according to the accrual principle, recognising the expenditure of the interest in the period, during which they have occurred, regardless of whether payment has or has not been made. On the day of payment they shall be allocated to liabilities of interest accrued in the balance sheet previously.

162. If separation of a finance lease (leasing) payments (financial costs, leasing interest and reduction of liabilities) has not been disclosed in the finance lease (leasing) payment flow, financial costs shall be separated according to the reporting periods during the whole period of the finance lease (leasing) so that it would comply with the constant rate of interest from the remaining liabilities.

163. [6 August 2013]

164. Income that haas been received before the date of closing the reporting period (balance sheet) for definite services that will be rendered in the subsequent periods (following after the reporting period) and the received prepayment for assets (goods) the delivery of which will occur in the subsequent periods shall be accounted by the budget institution as non-current or short-term revenues of the subsequent periods and received prepayments.

[16 October 2012]

165. Foreign financial assistance received (transaction partner - non-resident) and donations and gifts received shall also be accounted in the revenues of the subsequent periods, if according to at least one provision in the gift contract or contract of the agreement of the parties:

165.1. the resources received are intended for the acquisition, construction or building of a non-current asset, except for the non-current assets referred to in Paragraph 82.2 of this Regulation;

165.2. the resources received shall be used only in the subsequent reporting year for settling specific expenditure of the subsequent reporting year or for ensuring the performance of the functions of the budget institution;

165.3. the resources received must be repaid in case if the provisions are not met.

[16 October 2012]

166. Foreign financial assistance and donations initially accounted in the revenues of the subsequent periods, as well as gifts, shall be recognised in the basic activity revenue of the relevant reporting periods:

166.1. according to the amounts of the current year depreciation and derecognised cost of the non-current asset, if the financial assistance or financial support received completely covers the cost of the relevant object;

166.2. according to the part of the current year depreciation and derecognised cost of the non-current asset, if the financial assistance received covers only part of the relevant amount of the object;

166.3. if the financial assistance received in the preceding reporting year is used for the settling of the reporting year expenditures or for ensuring the performance of the functions of the budget institution;

166.4. if provisions are met, in case of non-settlement of which it would be required to repay the resources received;

166.5. gradually during the settlement of the provisions.

[16 October 2012]

167. Payments recognised in the revenues of the subsequent periods and received prepayments shall be included in the financial performance report according to the accrual principle, recognising the revenues in the period, to which they are related. Respectively, the revenues shall be recognised on the day when a budget institution has rendered a service or delivered the asset intended in the transaction or according to the stage of completion of the transaction at least once during the reporting period.

[16 October 2012]

168. Accumulated liabilities shall be recognised if a relatively precise estimate of the amount of liabilities and deadlines for payment is possible and the level of uncertainty is much lower than for provisions. A budget institution shall record the accumulated liabilities at the end of the reporting period (financial year, if it is not laid down otherwise in the laws and regulations regarding the preparation of reports or in the accounting procedures of the budget institution). The amount of the accumulated liabilities shall be determined according to the agreements entered into, the estimates, received corroborative documents or according to previous experience regarding the amount of expenditures. The amount estimated shall be recognised in the basic activity expenditures or financial expenditures (interest expenditures) and in the liabilities accumulated. If it is necessary to reduce the previously estimated amount of liabilities in the subsequent periods, the previously recognised expenditures and accumulated liabilities shall be reduced.

[29 March 2011; 16 October 2012]

169. The accumulated liabilities for the annual leaves of the employees of a budget institution shall be:

169.1. recognised, by estimating the liabilities of the budget institution in favour of the employee as concerns the unused days of the leave at the end of the reporting period, regardless of the number of the leave days used by the employee after the end of the reporting period;

169.2. estimated individually for each employee, by determining the number of the days of the leave unused by the employee by the end of the reporting period (financial year, if it is not laid down otherwise in laws and regulations), multiplying them by the employee's average earnings in accordance with the requirements of the Labour Law and calculating the relevant social insurance payments of the employer;

169.3. having calculated the amount of accumulated liabilities for each employee, the total amount of the accumulated liabilities for the unused leaves of the employees of the budget institution shall be calculated.

3. General Principles for the Accounting of the Calculation of the Budget Implementation Result

3.1. Accounting of Revenues and Expenditures

170. Revenues and expenditures shall be accounted according to the accrual principle, recognising the revenues and expenditures in the period, during which they have occurred, irrespective of the receipt or payment of cash. Adjustments of revenues and expenditures shall be admissible only within the scope of the reporting period. The detected accounting errors, inaccuracies and the impact of changes in accounting policy of the previous periods shall be accounted as revenue and expenditure corrections of the reporting period.

171. Revenues and expenditures of a budget institution shall be accounted in accordance with the requirements laid down in the laws and regulations in the field of the budget classification.

172. Revenues in a foreign currency shall be accounted in euros on the day of recognition of the revenues. Revenues and expenditures that occur from fluctuations of the currency exchange rate between the day of recognition of the revenue and the day of receipt of cash shall be accounted as revenues or expenditure from the fluctuations of the currency exchange rate.

[6 August 2013]

173. Revenues from the rendering of services or sale of assets shall be accounted, deducting the value added tax and discounts, which are directly related to the sale thereof.

[29 March 2011]

174. [16 October 2012]

175. On the day of allocation (receipt) of assignations (grants) a budget institution shall recognise the basic activity revenues from the received grants and increase the cash account.

176. At the end of the reporting period (year) a budget institution shall, according to the accrual principle, adjust the recognised basic activity revenues for the unused part of allocated assignations (grants) (closed assignations of the budget), as well as by reducing the remaining cash.

177. [16 October 2012]

178. On the day of issuance of a corroborative document of non-tax revenues the basic activity revenues and receivables shall be recognised. When issuing a corroborative document of prepayment of non-tax revenues, justification for recognition of assets or liabilities in the balance sheet shall not occur. Corroborative documents issued for prepayment shall be registered in accordance with the procedures for registering the document flow of a budget institution.

[16 October 2012]

179. Any received gifts, donations and inheritances shall be accounted in the relative group of assets, recognising on the day of receipt, assessment or value approval the basic activity revenues of the reporting period or revenues of the subsequent periods in such amount that has been determined in the documents associated with the receipt of the gifts, donations or inheritances or in which the relevant gifts, donations or inheritances have been assessed.

[16 October 2012]

179.1 Subsidies and grants for merchants, associations and foundations according to the accrual principle shall be recognised:

179.1 1. in expenditures of the subsequent periods, when paying the subsidies and grants in advance;

179.1 2. in the basic activity expenditures according to the corroborative documents submitted by the merchant, association or foundation, which have been approved at the budget institution.

[16 October 2012]

3.1.1 Accounting of Transfer Revenues and Expenditures

[16 October 2012]

179.2 A budget institution shall, when approving in accordance with the laws and regulations in the field of budget and finance a corroborative document submitted by another budget institution and attesting to the occurrence of expenditures, recognise the basic activity expenditures and liabilities of the reporting period in favour of the budget institution. When a transfer payment is made, liabilities shall be reduced.

179.3 A budget institution shall, when receiving from another budget institution an approval regarding corroborative (recognised) expenditures, recognise the basic activity revenues and receivables from the budget institution. When receiving transfer, receivables shall be reduced.

179.4 A budget institution, which in accordance with the laws and regulations in the field of budget and finance or a corroborative document regarding the request of a prepayment performs transfer in advance, shall recognise the transfers in advance. When approving the utilisation of a transfer, a prepayment shall be reduced by the relevant amount and the basic activity expenditures of the reporting period shall be recognised.

179.5 A budget institution, which receives a prepayment transfer, shall recognise the transfer received in advance. The prepayment received shall be reduced and the basic activity revenues of the reporting period shall be recognised according to the received corroborative document regarding corroborative (recognised) expenditures.

179.6 Transfers for earmarked grants for work remuneration of teachers at educational institutions of a local government and for social insurance contributions shall be accounted in conformity with the following provisions:

179.6 1. on the day of payment of the transfer a budget institution, which receives the transfer, shall increase the cash account and recognise the basic activity revenues from the transfers received. At the end of the reporting year a budget institution, which has received transfer but has not received an approval regarding the corroborative (recognised) expenditures or has not used the received transfer according to the accrual principle, shall adjust the basic activity revenues of the reporting period and recognise transfers received in advance in the amount of the unused and non-approved amount, informing the budget institution thereof, which has performed transfer, within the time periods laid down in the laws and regulations regarding the preparation of reports for comparing the mutual transactions. At the beginning of the subsequent reporting period the transfers received in advance shall be reduced and the basic activity revenues of the reporting period shall be recognised;

179.6 2. on the day the transfer is paid a budget institution, which pays the transfer, shall reduce the cash account and recognise the basic activity expenditures from transfers. At the end of the reporting period a budget institution, which has performed transfer, shall, according to the information received from the budget institution that has received the transfer, adjust the basic activity expenditures of the reporting period and recognise transfers paid in advance according to the accrual principle in the amount of the unused and non-recognised transfer. At the beginning of the subsequent reporting year the prepayment of transfers shall be reduced and the basic activity expenditures shall be recognised.

3.2. Accounting of the Closing of an Reporting Period

180. At the end of an reporting period a budget institution shall summarise the accounting information from the closing processes and activities, as well as ascertain that all accounting procedures have been fulfilled (calculation and accounting of the depreciation (amortisation) of property, plant and equipment and intangible assets, calculation and accounting of the impairment of intangible assets, property, plant and equipment, financial investments and inventories, calculation and accounting of revenues and expenditures that occurred due to the fluctuations of the currency exchange rates, calculation and accounting of the accrued revenues and expenditures, calculation and accounting of provisions, determination and accounting of the short-term and non-current part of assets and liabilities, closing of accounts and determination and accounting of the surplus or deficit of the reporting year).

[29 March 2011]

181. At the end of a reporting period all revenue and expenditure accounts of the reporting year shall be closed according to the budget types and recorded in the account of the balance sheet passive "Result of the Reporting Year Budget Implementation".

182. When recording the surplus or deficit of the reporting year, the account of the balance sheet passive "Result of the Reporting Year Budget Implementation" shall be closed only with revenue and expenditure accounts.

183. In the following year the remainder of the account "Result of the Reporting year Budget Implementation" shall be carried over to the account of the balance sheet passive "Result of the Budget Implementation of the Previous Reporting Years".

4. Assessment of Financial Instruments in the Fair Value Thereof

184. The provisions referred to in this Chapter shall be applicable in the accounting of local governments only.

185. The terms "financial instruments" and "derived financial instruments" used in this Regulation conform to the terms used in the Financial Instrument Market Law. Financial instruments (also derived financial instruments) shall be assessed in the fair value, conforming to the provisions referred to in this Paragraph and in Paragraph 186 of this Regulation. Contracts, the underlying asset of which are goods and which intend that the both parties have the right to perform settlements in cash or with any other financial instrument, shall be derived financial instruments, except for the case, if all of the following conditions are in effect:

185.1. the contract has been entered into according to the planned needs of the budget institution to purchase or utilise goods, raw materials, basic materials and auxiliary materials and still conform to them;

185.2. the contract has initially been intended for the needs referred to in Sub-paragraph 185.1 of this Regulation;

185.3. the contractual liabilities are intended to be settled with the supply of goods.

186. Assessment in the fair value shall be applied only for such financial liabilities, which are part of the trade portfolio or which have been created out of derived financial instruments.

187. Investments held to maturity, which are not derived financial instruments, loans and receivables, which are not held for trading, and investments in associates shall not be subject to the assessment in the fair value, as well as other financial instruments that shall not be subject to the assessment in the fair value.

188. In addition to the provisions referred to in Paragraph 184 of this Regulation any item of financial assets or financial liabilities, which is classified as a hedged item, or a definite part of such an item shall be assessed in the fair value, if it is necessary according to the hedging procedure accepted at the institution.

189. An assessment of financial instruments in the fair value must be reliable. An assessment shall be reliable, if the fair value of financial instrument has been determined by using one of the following methods:

189.1. for financial instruments, for which price quotations in active public securities market have been published, the fair value shall be determined on the basis of the market price. If a financial instrument does not have the abovementioned market price, but separate components thereof or similar financial instruments have such a price, the market price of such an instrument may be determined taking into account the market price of the components thereof or similar financial instruments;

189.2. if it is impossible to determine the market price of financial instruments, their fair value shall be determined on the basis of the value that has been calculated using generally recognised and applicable assessment methods, if the calculated value shows the possible market price of such instruments.

190. Changes in the fair value of a financial instrument that have occurred when carrying out an assessment according to the methods referred to in this Regulation shall be included in financial revenues and expenditures.

191. If a financial instrument has been classified as a hedging instrument, according to the hedging procedure accepted by the institution some (or all) changes of the fair value of this instrument need not be recognised in revenues or expenditures and shall be accounted as the revaluation reserve of financial instruments.

192. If changes in the fair value of a financial instrument depend on fluctuations of the currency exchange rate related to the non-current asset of an institution in the equity of a foreign capital company under the jurisdiction thereof, it shall not be included in revenues or expenditures and shall be accounted as the revaluation reserve of financial instruments.

193. Changes of the fair value of a financial asset available for sale (unless such assets are derived financial instruments) shall be accounted by an institution as the revaluation reserve of financial instruments.

194. The revaluation reserve of financial instruments shall be included in financial revenues or expenditures in the period in which the relevant financial instrument has been sold or in which the value of the financial asset has decreased.

5. Closing Provisions

195. Cabinet Regulation No. 867 of 15 November 2005, Procedures by which Budgetary Institutions Organise Accounting (Latvijas Vēstnesis, 2005, No. 187; 2007, No. 200; 2009, No. 18) is repealed.

196. Land that belongs to and is within the competence of Rīga city local government, which has not been included in the balance sheet before, shall be included in accounting according to the data of the State Cadastre Information System of Immovable Property and the values determined therein by 30 December 2010 in accordance with the deadline laid down in the Law On the State and Local Government Land Ownership Rights and Corroboration of Such Rights in Land Registers. When including in the balance sheet land that has not been accounted before, the asset and revenues shall be recognised.

196.1 According to Section 2, Paragraph two, Clause 2 of the Law On the State and Local Government Land Ownership Rights and Corroboration of Such Rights in Land Registers land within the competence of the State, which has not been included in the balance sheet before, shall be included in accounting according to the data of the State Cadastre Information System of Immovable Property and the values determined therein by 31 December 2011. When including in the balance sheet land that has not been accounted before, the asset and revenues shall be recognised.

[27 April 2010]

197. Budget institutions shall, by 31 December 2010, carry out revaluation of land (except for the acquired land) according to the cadastral value as on 1 November 2010, accounting in the following way:

197.1. if the cadastral value of land exceeds the carrying amount thereof, the increase shall be recognised in other revenues;

197.2. if the cadastral value of land is lower than the carrying amount thereof, it shall be recognised in other expenditures;

197.3. if the cadastral value of land is lower than the carrying amount thereof and the value of the land has been previously revaluated and recognised in the revaluation reserves of non-current assets, the relevant revaluation reserve shall be derecognised and the carrying amount of the land shall be reduced to equal the cadastral value thereof.

198. Budget institutions shall ensure applying of the requirements referred to in Paragraphs 25 and 26 of this Regulation in accounting no later than by 31 December 2010.

198.1 Budget institutions shall ensure applying of the requirements referred to in Paragraphs 25 and 26 of this Regulation in accounting in favour of port administrations no later than by 31 December 2010.

[29 March 2011]

198.2 Budget institutions shall ensure applying of the requirements referred to in Paragraphs 25 and 26 of this Regulation in favour of movable property and the requirements referred to in Paragraph 86.5 of this Regulation in accounting no later than by 31 December 2013.

[16 October 2012]

199. Budget institutions shall recognise immovable properties in the composition of museum holdings according to their cadastral value by 31 December 2012, accounting them in accounts of similar property, plant and equipment according to their use and separating them in analytical accounting. Depreciation need not be calculated for cultural and natural monuments, objects of culture and art, objects of museum holdings, as well as any other cultural and historic property.

200. Budget institutions shall recognise other assets in the composition of museum holdings (except for immovable property) according to the time periods for verification of the existence of museum holdings laid down in Paragraph 56.1 of Cabinet Regulation No. 956 of 21 November 2006, Regulations Regarding the National Holdings of Museums, and determine the value of the objects of the holdings of a museum concurrently with the verifications of the existence of holdings, assessing the asset in the acquisition (construction) amount thereof, if it is known. If the acquisition (construction) amount of assets is unknown, a commission approved by the head of the budget institution, inviting experts of the relevant field, where necessary, shall determine:

200.1. the fair value of the assets (if possible) in accordance with Paragraph 28 of this Regulation;

200.2. units of the holdings and, if the fair value of the assets cannot be determined, assess each unit in the value of one euro. Assets shall be accounted in the accounts of similar property, plant and equipment according to the use thereof and shall be separated in analytical accounting.

[6 August 2013]

200.1 Budget institutions shall, no later than by 31 December 2015, ensure application of the requirements referred to in Paragraphs 179.2, 179.3, 179.4 and 179.5 of this Regulation in accounting, observing until the application the provisions referred to in Paragraph 179.6 of this Regulation for accounting of all types of transfers.

[16 October 2012]

200.2 Budget institutions shall, no later than by 31 December 2013, carry over liabilities for resources received in the previous periods from residents for implementation of projects of foreign financial assistance and projects co-financed by the policy instruments of the European Union:

200.2 1. in the basic activity revenues according to the received approval regarding the corroborative (recognised) expenditures;

200.2 2. in prepayments of transfers, if an approval regarding the corroborative (recognised) expenditures has not been received.

[16 October 2012]

200.3 Budget institutions shall, no later than by 31 December 2013, carry over the balance of the revaluation reserves of non-current assets in other revenues.

[16 October 2012]

200.4 After submitting the annual report for 2013 budget institutions shall, in accordance with the laws and regulations in the field of budget and finances, adjust at the beginning of 2014 the balances of accounts and the accounting units forming them by the difference, which has occurred when converting lats into euros between the balances of accounts and the accounting units forming them, which were disclosed in the report for 2013, and the actual balances of accounts and the accounting units forming them, and recognise financial revenues or expenditures associated with the introduction of euro. Until 31 December 2014 adjustment records shall be reversed.

[6 August 2013]

200.5 The Ministry of Economics shall ensure that:

200.5 1. no later than by 31 December 2014 the requirements referred to in Paragraph 25.1 of this Regulation in favour of the State capital shares (inventory) are applied in accounting;

200.5 2. no later than by 31 December 2015 the requirements referred to in Paragraphs 25.1 and 25.2 of this Regulation in favour of the immovable property owned by (within the competence of) the State are applied in accounting.

[10 December 2013]

201. This Regulation shall come into force on 1 January 2010.

Prime Minister V. Dombrovskis

Minister for Finance E. Repše

 

Annex 1
Cabinet Regulation No. 1486
15 December 2009
[29 March 2011; 16 October 2012; 6 August 2013; 10 December 2013]

Chart of Accounts and Description of Accounts

I. Chart of Accounts

 

Levels of account groups Account number Name of account
1. 2. 3.
1 2 3 4 5
ASSET
1000       Non-current assets
  1100     Intangible assets
    1110   Development measures and software
    1120   Licences, concessions and patents, trade marks and similar rights
      1121 Computer software
      1122 Other licences
      1123 Concessions
      1124 Patents
      1125 Licences for computer software
      1129 Other rights of intangible assets
    1130   Other intangible assets
    1140   Generation of intangible assets
    1160   Research of mineral resources and other similar non-produced intangible assets
    1180   Prepayments for intangible assets
      1181 Prepayments for development measures and software
      1182 Prepayments for licences, concessions and patents, trade marks and similar rights
      1184 Prepayments for the research of mineral resources and other similar non-produced intangible assets
      1185 Prepayments for other intangible assets
      1187 Impairment loss of prepayments for intangible assets
    1190   Accumulated amortisation and impairment loss of intangible assets
      1191 Accumulated amortisation of development measures and software
      1192 Accumulated amortisation of other licences, concessions and patents, trade marks and similar rights
      1193 Accumulated amortisation of other intangible assets
      1195 Accumulated amortisation of computer software
      1196 Accumulated amortisation of the research of mineral resources and other similar non-produced intangible assets
      1199 Impairment loss of intangible assets
  1200     Property, plant and equipment
    1210   Land, buildings and structures
      1211 Residential buildings
      1212 Non-residential buildings
      1213 Transport structures
      1214 Land beneath buildings and structures
      1215 Cultivated land
      1216 Land to be used for recreation and entertainment
      1217 Other land
      1218 Engineering structures
      1219 Other immovable property
    1220   Technological equipment and machinery
    1230   Other property, plant and equipment
      1231 Vehicles
      1232 Fixed household assets
      1233 Library funds
      1234 Original works of entertainment, literature and art
      1235 Precious stones and precious metals
      1236 Antique and other objects of culture and art
      1237 Other valuables
      1238 Computer hardware, communication and other office equipment
      1239 Previously non-classified other property, plant and equipment
    1240   Property, plant and equipment under construction and unfinished construction
      1241 Property, plant and equipment under construction
      1242 Unfinished construction
    1250   State and local government property transferred for holding
      1251 State and local government land transferred for holding
      1252 State and local government buildings and structures transferred for holding
      1259 Other property of the State and local government transferred for holding
    1260   Biological and underground assets
      1261 Underground assets
      1262 Orchards and other plantings of trees that regularly produce
      1263 Forest stands
      1264 State and local government biological and underground assets transferred for holding
      1269 Other biological assets
    1270   Non-current assets in leased property, plant and equipment
    1280   Prepayments for property, plant and equipment
      1281 Prepayments for land, buildings and structures
      1282 Prepayments for technological equipment and machinery
      1283 Prepayments for other property, plant and equipment
      1286 Prepayments for biological and underground assets
      1287 Impairment loss of prepayments for property, plant and equipment
      1289 Other prepayments
    1290   Accumulated depreciation and impairment loss of property, plant and equipment
      1291 Accumulated depreciation of buildings and structures
      1292 Accumulated depreciation of technological equipment and machinery
      1293 Accumulated depreciation of other property, plant and equipment
      1295 Accumulated depreciation of State and local government property transferred for holding
      1297 Accumulated depreciation of non-current assets in leased property, plant and equipment
      1299 Impairment loss of property, plant and equipment
  1300     Non-current financial investments
    1310   Investment of related capital companies
      1311 Investment in related capital companies
      1319 Impairment loss of the shares of related capital companies
    1320   Investment in associated capital companies
      1321 Investment in associated capital companies
      1329 Impairment loss of the shares of associated capital companies
    1330   Non-current loans
      1331 Non-current loans to related capital companies
      1332 Non-current loans to associated capital companies
      1339 Other non-current loans
    1340   Non-current financial investments in securities
      1341 Non-current financial investments in government securities of Latvia
      1342 Non-current financial investments in local government securities of Latvia
      1349 Other non-current financial investments in securities
    1350   Other non-current financial investments
      1351 Non-current financial investments in international financial institutions
      1352 Non-current financial investments in capital of capital companies quoted on a stock exchange
      1353 Non-current financial investments in capital of capital companies that are not quoted on a stock exchange
      1354 Non-current receivables for second level funded pensions
      1358 Impairment loss of other non-current financial investments
      1359 Other non-current financial investments
    1370   Non-current financial investments transferred for holding
      1371 Investment in related capital companies transferred for holding
      1372 Investment in associated capital companies transferred for holding
      1374 Non-current financial investments in capital of capital companies quoted on a stock exchange transferred for holding
      1375 Non-current financial investments in capital of capital companies that are not quoted on a stock exchange transferred for holding
    1380   Prepayments for non-current financial investments
      1381 Prepayments for shares in related capital companies
      1382 Prepayments for shares in associated capital companies
      1383 Prepayments for securities
      1384 Prepayments for shares in capital of capital companies quoted on a stock exchange
      1385 Prepayments for shares in capital of capital companies that are not quoted on a stock exchange
      1389 Prepayments for other financial investments
    1390   Impairment loss of non-current loans and prepayments for non-current financial investments
  1400     Non-current receivables and impairment loss of non-current receivables
    1410   Non-current receivables for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
      1415 Non-current receivables for prepayment of transfers
      1416 Other non-current receivables for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
    1420   Other non-current receivables
    1490   Impairment loss of unsafe non-current receivables
2000       Current assets
  2100     Inventory
    2110   Raw materials and materials
      2111 Materials for educational, scientific and other purposes
      2112 Food products
      2113 Medicine, medicinal products and medical materials
      2114 Household materials and office stationery
      2115 Heating fuel, fuel, lubricants
      2116 Installations and machinery spare parts
      2119 Other materials
    2120   Unfinished products and orders
    2130   Finished products, orders and inventory for alienation
      2131 Finished products
      2132 Inventory and non-current assets for alienation
      2133 Finished orders
      2134 State and local government inventory and non-current assets for alienation transferred for holding
    2140   Agricultural produce
      2141 Draught and productive animals
      2142 Animal fodder and seeds
      2149 Other agricultural produce
    2150   Strategic reserves
    2160   Equipment
      2161 Short-life equipment
      2162 Clothing, footwear, linen and bedding
      2165 State and local government equipment transferred for holding
      2169 Other equipment
    2170   Specialist military equipment and construction of specialist military equipment
      2171 Specialist military equipment
      2179 Construction of specialist military equipment
    2180   Prepayments and impairment of prepayments for inventory
      2181 Prepayments for inventory
      2187 Impairment of prepayments for inventory
    2190   Impairment loss of inventory
  2300     Debtors
    2310   Receivables in favour of purchasers and commissioning parties
      2312 Receivables between budget institutions
      2313 Receivables between subordinate budget institutions
      2314 Receivables between State and local government budget institutions
      2315 Receivables for remainder of pension and allowance settlements in expenditure institutions
      2316 Receivables in favour of related capital companies
      2317 Receivables in favour of associated capital companies
      2318 Receivables in favour of other capital companies
      2319 Other receivables in favour of purchasers and commissioning parties
    2320   Receivables for projects (measures) financed by foreign financial assistance and the European Union policy instruments
      2321 Receivables in favour of a foreign partner
      2329 Other receivables
    2330   Allowance account for impairment losses
      2331 Impairment for receivables in favour of purchasers and commissioning parties
      2332 Impairment for receivables for measures financed by foreign financial assistance and the European Union policy instruments
      2333 Impairment for receivables in favour of personnel
      2339 Impairment for other receivables
    2340   Receivables for taxes and fees
      2341 Receivables for immovable property tax
      2342 Receivables for personal income tax
      2343 Receivables for value added tax
      2349 Other receivables for taxes and fees
    2360   Accrued revenues
      2361 Accrued interest revenue for deposits and balances in the Treasury
      2362 Other accrued interest revenue for deposits and balances
      2363 Accrued interest revenue for loans
      2364 Accrued revenue from paid services
      2365 Accrued revenue from derived financial instruments
      2369 Other accrued revenue
    2370   Overpaid taxes
      2371 Personal income tax
      2372 State social insurance mandatory contributions
      2373 Value added tax
      2379 Other taxes
    2380   Receivables arising in favour of the personnel
      2381 Prepayments issued to employees
      2382 Receivables for shortages
      2389 Other receivables arising in favour of the personnel
    2390   Other receivables
      2391 Receivables for overpayments to the recipients of social services
      2399 Other previously non-classified receivables
  2400     Expenditures of subsequent periods and prepayments for services and projects
    2410   Expenditures of subsequent periods for projects and measures financed by foreign financial assistance and the European Union policy instruments
      2411 Expenditures of subsequent periods for projects of the Cohesion Fund
      2419 Other expenditures of subsequent periods for projects and measures financed by foreign financial assistance and the European Union policy instruments
    2420   Expenditures of subsequent periods and prepayments for services and projects
      2421 Prepayments for services
      2422 Expenditures of subsequent periods for work remuneration settlements
      2423 Expenditures of subsequent periods for social settlements
      2427 Impairment loss of prepayments for services
      2429 Other expenditures of subsequent periods
    2430   Prepaid transfers
      2431 Transfers for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
      2432 Other transfers
  2500     Short-term financial investments
    2510   Investment in related capital companies
    2520   Investment in associated capital companies
    2530   Short-term loans and current portion of non-current loans
      2531 Short-term loans to related capital companies
      2532 Short-term loans to associated capital companies
      2534 Impairment for the issued short-term loans
      2539 Other short-term loans
    2540   Short-term financial investments in securities
      2541 Short-term financial investments in government securities of Latvia
      2542 Short-term financial investments in local government securities of Latvia
      2549 Other short-term financial investments in securities
    2550   Other short-term financial investments
      2551 Short-term financial investments in international financial institutions
      2552 Short-term financial investments in the capital of capital companies quoted on stock exchanges
      2553 Short-term financial investments in the capital of capital companies that are not quoted on stock exchanges
      2554 Short-term receivables for second level funded pensions
      2559 Other short-term financial investments
    2570   Prepayments for short-term financial investments
      2571 Prepayments for short-term financial investments
      2577 Impairment loss of prepayments for short-term financial investments
  2600     Cash
    2610   Cash on hand
      2611 Assets of the basic budget
      2612 Assets of the special budget
      2613 Donation and gift assets
      2614 Assets of other budgets
    2620   Demand deposits in the Treasury or credit institutions
      2621 Assets of the basic budget
      2622 Assets of the special budget
      2623 Donation and gift assets
      2624 Assets of other budgets
    2630   Term deposits
      2631 Assets of the basic budget
      2632 Assets of the special budget
      2633 Donation and gift assets
      2634 Assets of other budgets
    2670   Cash en route
      2671 Assets of the basic budget
      2672 Assets of the special budget
      2673 Donation and gift assets
      2674 Assets of other budgets
  2700     Financing of administered institutions
    2710   Assignations to local government budget institutions
LIABILITIES
3000       Equity
  3300     Reserves
    3310   Revaluation reserve of non-current assets
    3320   Revaluation reserve of financial instruments
    3360   Other reserves
  3500     Surplus or deficit of the budget implementation
    3510   Surplus or deficit of the budget implementation of the preceding reporting years
      3511 Surplus or deficit of the basic budget implementation of the preceding reporting years
      3512 Surplus or deficit of the special budget implementation of the preceding reporting years
      3513 Surplus or deficit of the implementation of donations and gifts of the preceding reporting years
      3514 Surplus or deficit of the implementation of other budgets of the preceding reporting years
    3520   Surplus or deficit of the budget implementation of the reporting year
      3521 Surplus or deficit of the basic budget implementation of the reporting year
      3522 Surplus or deficit of the special budget implementation of the reporting year
      3523 Surplus or deficit of the implementation of donations and gifts of the reporting year
      3524 Surplus or deficit of the implementation of other budgets of the reporting year
4000       Provisions
  4200     Provisions for the expected liabilities
5000       Creditors
  5100     Non-current liabilities
    5110   Non-current borrowings
      5111 Non-current borrowings from the credit institutions of Latvia
      5112 Non-current borrowings from the Treasury
      5113 Non-current borrowings from foreign institutions
      5114 Previously guaranteed borrowings
      5119 Other non-current borrowings
    5130   Non-current liabilities to suppliers and contractors
    5140   Non-current accumulated liabilities
    5150   Non-current revenues of the subsequent periods and prepayments received
      5151 Non-current prepayments received for goods and services
      5154 Non-current revenues of subsequent periods for the donations and gifts received
      5155 Non-current liabilities for prepayments of transfers
      5156 Non-current liabilities for transfers received in advance for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
      5157 Non-current liabilities for the foreign financial assistance received
      5159 Other non-current revenues of subsequent periods and prepayments received
    5190   Other non-current liabilities
      5191 Non-current finance lease (leasing) liabilities
      5192 Non-current liabilities in favour of the recipients of financing for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
      5193 Non-current liabilities for repayments into the State budget for projects (measures) financed by foreign financial assistance and the European Union policy instruments
      5199 Other previously non-classified non-current liabilities
  5200-5900     Current liabilities
  5200 5210   Short-term borrowings and current portion of non-current borrowings
      5211 Short-term borrowings and current portion of non-current borrowings from the credit institutions of Latvia
      5212 Short-term borrowings and current portion of non-current borrowings from the Treasury
      5213 Short-term borrowings and current portion of non-current borrowings from foreign institutions
      5214 Previously guaranteed short-term borrowings and current portion of non-current borrowings
      5219 Other short-term borrowings and current portion of non-current borrowings
  5300 5310   Payables to suppliers and contractors
      5311 Liabilities in favour of suppliers and contractors
      5312 Liabilities between budget institutions
      5313 Liabilities between subordinate budget institutions
      5314 Liabilities between the State and local government budget institutions
      5315 Liabilities for remainder of pension and allowance settlements in expenditure institutions
      5316 Liabilities in favour of related capital companies
      5317 Liabilities in favour of associated capital companies
      5318 Liabilities in favour of other capital companies
      5319 Other previously non-classified liabilities in favour of suppliers and contractors
  5400     Short-term accrued liabilities
    5420   Short-term accrued liabilities
      5421 Accrued liabilities for settlements with employees
      5422 Accrued liabilities for settlements for taxes and social insurance payments
      5423 Accrued liabilities for interest payments for borrowings
      5424 Accrued liabilities for settlements with suppliers and contractors
      5425 Accrued liabilities for interest payments and the service charge for borrowings from the Treasury
      5429 Other liabilities accrued
  5600     Settlements for work remuneration and deductions (except taxes)
    5610   Settlements for work remuneration
      5611 Settlements for work remuneration in the current month
      5612 Settlements for deposited work remuneration
    5620   Settlements for deductions from work remuneration (except taxes)
      5621 Deductions according to writs of execution
      5622 Settlements for insurance
      5629 Other deductions
  5700 5720   Taxes and social insurance payments
      5721 Personal income tax
      5722 State social insurance mandatory contributions
      5723 Value added tax
      5724 Immovable property tax
      5729 Other taxes
  5800 5810   Other current liabilities
      5811 Other liabilities in favour of personnel
      5812 Settlements for scholarships
      5813 Liabilities for the received security deposit and other cash
      5814 Short-term finance lease (leasing) liabilities
      5815 Liabilities in favour of the budget
      5816 Short-term operating lease liabilities
      5817 Current portion of other non-current liabilities in favour of financial institutions
      5819 Other current liabilities
    5820   Current liabilities for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
      5821 Current liabilities in favour of the recipients of financing for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
      5822 Current liabilities for repayments into the State budget for projects (measures) financed by foreign financial assistance and the European Union policy instruments
  5900 5910   Revenues of subsequent periods and prepayments received
      5911 Current prepayments received for goods and services
      5912 Calculated, but non-disbursed pensions and allowances
      5914 Revenues of subsequent periods for the donations and gifts received
      5915 Revenues of subsequent periods for the interest revenues
      5917 Current liabilities for the foreign financial assistance received
      5919 Other revenues of subsequent periods and prepayments received
    5930   Prepaid transfers
      5931 Transfers received in advance for projects (measures) financed by the European Union policy instruments and other foreign financial assistance
      5932 Other transfers
REVENUES AND EXPENDITURES
6000       Basic activity revenues
7000       Basic activity expenditures
8000       Various revenues and expenditures
  8100     Financial revenues
    8110   Revenues from currency exchange rate fluctuations
      8111 Revenues from currency exchange rate fluctuations of the basic budget
      8112 Revenues from currency exchange rate fluctuations of the special budget
      8113 Revenues from currency exchange rate fluctuations of donations and gifts
      8114 Revenues from currency exchange rate fluctuations of other budgets
    8120   Interest revenues
      8121 Interest revenues of the basic budget
      8122 Interest revenues of the special budget
      8123 Interest revenues of donations and gifts
      8124 Interest revenues of other budgets
    8130   Revenues from the sale of capital shares, trade and revaluation of securities
    8140   Revenues from the revaluation or excess of non-current financial investments
    8150   Revenues from a property investment in related and associated capital companies
    8180   Financial revenues from the introduction of euro
    8190   Other financial revenues
  8200     Financial expenditures
    8210   Expenditures from currency exchange rate fluctuations
      8211 Expenditures from currency exchange rate fluctuations of the basic budget
      8212 Expenditures from currency exchange rate fluctuations of the special budget
      8213 Expenditures from currency exchange rate fluctuations of donations and gifts
      8214 Expenditures from currency exchange rate fluctuations of other budgets
    8220   Interest expenditures
      8221 Interest expenditures of the basic budget
      8222 Interest expenditures of the special budget
      8223 Interest expenditures of donations and gifts
      8224 Interest expenditures of other budgets
    8230   Expenditures from the sale of capital shares, sale and revaluation of securities
    8240   Expenditures from revaluation and impairment of non-current financial investments
    8280   Financial expenditures from the introduction of euro
    8290   Other financial expenditures
  8400     Values received and transferred without consideration
    8410   Revenues from values received and transferred without consideration
      8411 Revenues from the receipt and transfer of values without consideration between budget institutions
      8412 Revenues from the receipt and transfer of values without consideration between subordinate budget institutions
      8413 Revenues from the receipt and transfer of values without consideration between State and local government budget institutions
      8414 Revenues from the receipt and transfer of values without consideration from other persons
    8420   Expenditures from values received and transferred without consideration
      8421 Expenditures from the receipt and transfer of values without consideration between budget institutions
      8422 Expenditures from the receipt and transfer of values without consideration between subordinate budget institutions
      8423 Expenditures from the receipt and transfer of values without consideration between State and local government budget institutions
      8424 Expenditures from the receipt and transfer of values without consideration from other persons
  8500     Other revenues
    8510   Revenues from the sale of intangible assets and property, plant and equipment intended for alienation
    8520   Revenues from the sale of inventory
    8530   Revenues from the extinguishment of liabilities
    8540   Surplus detected during inventories
      8541 Surplus of intangible assets and property, plant and equipment
      8542 Surplus of financial investments
      8543 Surplus of inventory
      8544 Surplus of debtors
      8549 Other surpluses
    8550   Revenues from the reduction of impairment loss and provisions
      8551 Revenues from the reduction of impairment loss of prepayments for intangible assets
      8552 Revenues from the reduction of impairment loss of prepayments for property, plant and equipment
      8553 Revenues from the reduction of impairment loss of prepayments for financial investments
      8554 Revenues from the reduction of impairment loss of prepayments for inventory
      8555 Revenues from the reduction of impairment loss of receivables and prepayments for services
      8556 Revenues from the reduction of provisions for contingent liabilities
    8570   Revenues from the initial recognition of inventory in the balance sheet of the institution
    8580   Revenues from the initial recognition of non-current assets in the balance sheet of the institution
      8581 Revenues from the initial recognition of intangible assets and property, plant and equipment
      8582 Revenues from the initial recognition of financial investments in the balance sheet of the institution
      8589 Revenues from the initial recognition of other non-current assets in the balance sheet of the institution
    8590   Other previously non-classified revenues
      8591 Revenues from the increase of the value of forest stands
      8592 Revenues from the reduction of the revaluation reserve of non-current assets
      8593 Revenues from the reversal of the impairment of non-current assets
      8599 Other previously non-classified revenues
  8600     Other expenditures
    8610   Value of intangible assets and property, plant and equipment derecognised
      8611 Expenditures from the writing-off and liquidation of intangible assets and property, plant and equipment
      8612 Expenditures from the alienation of intangible assets and property, plant and equipment
    8620   Expenditures from the sale of inventory
    8630   Expenditures from the writing-off of receivables and extinguishment of loans
      8631 Expenditures from the writing-off of receivables
      8632 Expenditures from the extinguishment of loans
    8640   Shortages detected during inventories
      8641 Shortages of intangible assets and property, plant and equipment
      8642 Shortages of financial investments
      8643 Shortages of inventory
      8644 Shortages of debtors
      8649 Other shortages
    8650   Expenditures for the recognition of impairment loss and provisions
      8651 Expenditures for the recognition of impairment for prepayments for intangible assets
      8652 Expenditures for the recognition of impairment for prepayments for property, plant and equipment
      8653 Expenditures for the recognition of impairment for prepayments for financial investments
      8654 Expenditures for the recognition of impairment for prepayments for inventory
      8655 Expenditures for the recognition of impairment for receivables and prepayments for services
      8656 Expenditures for the recognition of provisions for contingent liabilities
    8690   Other previously non-classified expenditures
      8691 Expenditures from the impairment of intangible assets and property, plant and equipment
      8692 Expenditures from the impairment of financial investments
      8693 Expenditures from the impairment of equipment
      8699 Other previously non-classified expenditures
SUB-BALANCE SHEET
Codes    
0100       Leased assets
  9100     Assets of the sub-balance sheet
    9110   Contingent assets
    9120   Receivables for dividends and payments to be received for the utilisation of capital shares
    9130   Contractual penalties and fines to be received
    9140   Receivables for assets alienated by illegal means
    9190   Other assets of the sub-balance sheet
  9500     Liabilities of the sub-balance sheet
    9510   Future payments according to agreements entered into regarding projects financed by foreign financial assistance and the European Union policy instruments
    9520   Future liabilities and payments according to agreements and management decisions on the acquisition and construction of non-current assets and specialist military equipment, except for those that have been entered into regarding projects financed by foreign financial assistance and the European Union policy instruments
      9521 Acquisition and construction of land, buildings and structures
      9522 Acquisition and construction of specialist military equipment
      9529 Acquisition and construction of other non-current assets
    9530   Future liabilities and payments according to agreements and management decisions on the acquisition of goods and services, except for those that have been entered into regarding projects financed by foreign financial assistance and the European Union policy instruments and the lease
    9540   Received, but unpaid corroborative documents of prepayments
    9550   Future lease payments
    9560   Guarantees issued
    9590   Other liabilities of the sub-balance sheet

 

II. Description of Accounts

1. Intangible assets, which are intended for ensuring the functions of a budget institution, rendering of services or renting and the intended useful life of which exceeds one year, shall be accounted in the account group "1100 Intangible assets".

2. Expenditures of development measures and programmes shall be accounted in the account "1110 Development measures and programmes", if it is known that the project will be terminated and implemented:

2.1. the following shall be accounted in the account:

2.1.1. costs of development measures (for example, plan of development of administrative territories) and programmes, which means the use of the knowledge acquired during research work, discovery or other knowledge in the manufacturing plan or development of new (or substantially improved) materials, devices, products, processes, systems or services prior to the commencement of commercial manufacturing or use;

2.1.2. technical processes that prepare the result of research up to test prototype;

2.2. the following shall not be accounted in the account:

2.2.1. costs of the research work (shall be recognised in expenditures);

2.2.2. costs of the development measures, if the project or programme will not be terminated and implemented (shall be recognised in expenditures);

2.2.3. design and planning costs after approval of the project (shall be included in other costs of the project or in the acquisition (construction) cost of the non-current asset).

3. Licenses, concessions and patents, trademarks and similar rights shall be accounted in the account group "1120 Licenses, concessions and patents, trade marks and similar rights".

4. Computer software, utilisation rights of which are specified by a licence or which are specifically developed for the needs of a particular budget institution, shall be accounted in the account "1121 Computer software".

5. Licenses that are a permit of the author or owner of author rights to use an invention, a literary or art work for a fee, as well as licenses, which are issued by State institutions, local governments, professional associations for activity in any field (except licenses for utilisation of computer software), shall be accounted in the account "1122 Other licenses".

6. Concessions that are contracts, by which the State (local government) transfers the rights to natural wealth or any business unit that belongs to the State to a legal person for a definite period of time and according to definite conditions for a consideration, shall be accounted in the account "1123 Concessions".

7. Invention patents and design patents shall be accounted in the account "1124 Patents".

8. Licences acquired separately from computer software shall be accounted in the account "1125 Licences for computer software".

9. Other previously non-classified rights of intangible assets: trade marks, service marks, geographical indications, which are used in order to distinguish some goods and services from goods and services of other manufacturers or traders, as well as similar rights, shall be accounted in the account "1129 Other rights of intangible assets".

10. Previously non-classified intangible assets that comply with the definition of intangible assets shall be accounted in the account "1130 Other intangible assets": there is a possibility of a future flow of economic benefits and it is possible to perform a reliable assessment of the value of an asset (for example, specific knowledge, franchises).

11. Costs of the budget institution, which are directly related to the construction and preparation of intangible assets for the intended utilisation until the putting of the intangible asset in service, shall be accounted in the account "1140 Construction of intangible assets".

12. Expenditures for the research of oil and natural gas, oilfields (location of mineral resources, determination of amount and quality), the costs of the actual tests and measurements, as well as transport costs and other costs that are directly related to tests, shall be accounted in the account "1160 Research of mineral resources and other similar non-produced intangible assets".

13. Prepayments paid for the acquisition of intangible assets shall be accounted in the account "1180 Prepayments for intangible assets".

14. Prepayments paid for development measures and programmes shall be accounted in the account "1181 Prepayments for development measures and software".

15. Prepayments paid for licenses, concessions and patents, trade marks and similar rights shall be accounted in the account "1182 Prepayments for licenses, concessions and patents, trade marks and similar rights".

16. Prepayments paid for the research of mineral resources and other similar non-produced intangible assets shall be accounted in the account "1184 Prepayments for the research of mineral resources and other similar non-produced intangible assets".

17. Prepayments paid for other previously non-classified intangible assets shall be accounted in the account "1185 Prepayments for other intangible assets".

18. Impairment loss of prepayments for intangible assets shall be accounted in the account "1187 Impairment loss of prepayments for intangible assets".

19. The calculated impairment and the amortisation of intangible assets, which has been calculated in accordance with the intended useful life thereof, shall be accounted in the account "1190 Accumulated amortisation and impairment loss of intangible assets".

20. Amortisation calculated for development measures and programmes shall be accounted in the account "1191 Accumulated amortisation of development measures and software".

21. Amortisation calculated for other licenses (except licenses of computer software), licences for computer software, concessions and patents, trade marks and similar rights shall be accounted in the account "1192 Accumulated amortisation of other licences, concessions and patents, trade marks and similar rights".

22. Amortisation calculated for other intangible assets shall be accounted in the account "1193 Accumulated amortisation of other intangible assets".

23. Amortisation calculated for computer software shall be accounted in the account "1195 Accumulated amortisation of computer software".

24. Amortisation calculated for the research of mineral resources and other similar non-produced intangible assets shall be accounted in the account "1196 Accumulated amortisation of the research of mineral resources and other similar non-produced intangible assets".

25. Impairment calculated for intangible assets shall be accounted in the account "1199 Impairment loss of intangible assets".

26. Tangible and non-monetary assets of a budget institution, which are intended for ensuring the functions of the budget institution, administrative purposes, rendering of services, manufacturing (supply) of goods or renting and the intended useful life of which exceeds one year, shall be accounted in the account group "1200 Property, plant and equipment". The initial recognition cost of a property, plant and equipment unit shall be determined in accordance with the laws and regulations in the field of the classification of budget expenditures.

27. Land owned, possessed by the State or local government or being under jurisdiction thereof under buildings and structures, cultivated land, land to be used for recreation and entertainment, all buildings and structures of the budget institution, including equipment, installations and devices that are an integral part of such buildings and structures, shall be accounted in the account group "1210 Land, buildings and structures". Plots of land, buildings and structures shall be accounted in this account, if they are intended for ensuring the functions of the budget institution, rendering of services or renting and the intended useful life thereof exceeds one year:

27.1. land, buildings and structures to be used for one's own needs shall be separated from the rented or hired out properties in the analytical accounting. Land shall be accounted in land units according to the allocated cadastral designation number of the land unit. Partially rented and hired out properties shall be accounted as rented and hired out properties, if the rented or hired out space may be sold or rented separately and may be separated in the accounting. If it is impossible, partially rented and hired out properties shall be accounted as rented and hired out properties only if part of the property to be used for one's own needs is not substantial;

27.2. buildings and structures, which are cultural (architectural) monuments, shall be accounted in the accounts of similar property, plant and equipment according to the utilisation thereof (for example, residential buildings, non-residential buildings, structures), separating them in the analytical accounting;

27.3. constructions, equipment, installations and devices of buildings and structures, which are an integral part thereof, shall be accounted together with the relevant building or structure.

28. Buildings with at least for one half of the effective area used for habitation, shall be accounted in the account "1211 Residential buildings". If less than a half of the total effective area of the building is used for inhabitation, it shall be classified as a non-residential building in accordance with the purpose of the utilisation specified in the project thereof.

29. Buildings, which are not used or which are not intended for inhabitation, shall be accounted in the account "1211 Non-residential buildings". Administration buildings, manufacturing and trade buildings, hotels, restaurants, educational institutions, medical treatment and social care constructions, as well as historical buildings that are not intended for inhabitation (for example, museums) shall be accounted in this account.

30. Streets, motor roads, pavements, parking lots, airport runways, railway track constructions, bridges, overpasses, tunnels, buildings and constructions of ports and quaysides and other similar objects shall be accounted in the account "1213 Transport structures".

31. Land, on which buildings, structures or their foundations that are owned, possessed by or are under jurisdiction of the State, are built, shall be accounted in the account "1214 Land beneath buildings and structures". Courtyards, garden territories and driveways that are considered an integral part of the building or structure shall also be accounted herein.

32. Land, which is used in agriculture (including land for plantations and orchards), shall be accounted in the account "1215 Cultivated land".

33. Park territories and recreational areas together with surface waters adjacent thereto shall be accounted in the account "1216 Land to be used for recreation and entertainment".

34. Previously non-classified land (for example, quarries, territories of cemeteries, forest land) shall be accounted in the account "1217 Other land".

35. All types of engineering structures (except transport structures) - water impoundment and drainage structures and constructions, land amelioration systems, communications and transmission lines, oil and gas pipelines, water pipes, heating mains and sewerage networks, buildings and structures - shall be accounted in the account "1218 Engineering structures".

36. Previously non-classified immovable property - other buildings and structures, which are impossible to classify as buildings, transport or engineering structures (for example, historical monuments, sports and recreational structures) - shall be accounted in the account "1219 Other immovable property".

37. Technological equipment, measuring equipment, regulating devices, laboratory and medical installations and machinery, which is used for ensuring the functions of the budget institution or rendering of the services shall be accounted in the account "1220 Technological equipment and machinery":

37.1. vehicles and computer hardware shall not be accounted in the composition of the technological equipment and machinery;

37.2. spare parts and auxiliaries of technological equipment and machinery, which have an independent significance in the economic process and which are considered property, plant and equipment, shall be included in the composition of property, plant and equipment as separate accounting objects of the property, plant and equipment. Other spare parts and auxiliaries shall be accounted in the composition of the inventory and derecognised in expenditures when they are actually consumed (used).

38. Vehicles, fixed household assets, computer hardware, communication and office equipment, library funds, works of art and objects of art, valuables, objects of culture and art, assets in the composition of museum holdings (except for immovable property) and other previously non-classified property, plant and equipment of the budget institution shall be accounted in the account "1230 Other property, plant and equipment".

39. Vehicles for the carriage of goods or passengers, as well as other vehicles intended for ensuring the functions of the institution (goods and road passenger automobiles, buses, trolleybuses, motorcycles, bicycles, trailers and semi-trailers, waterborne craft, railway propulsion equipment, rolling stock of the railway and tram system, aircraft and other vehicles) shall be accounted in the account "1231 Vehicles".

40. Property, plant and equipment, which are used for ensuring economic activity of the budget institution, shall be accounted in the account "1232 Fixed household assets".

41. Books (including school textbooks) and other printed publications, microfilms, sound recordings and other information media which are registered in accordance with the procedures laid down in law and that form a library fund shall be accounted in the account "1233 Library funds".

42. Original movies, sound recordings, manuscripts and works of art shall be accounted in the account "1234 Original works of entertainment, literature and art".

43. Precious metals and precious stones, which are not used in manufacturing processes, shall be accounted in the account "1235 Precious stones and precious metals".

44. Paintings, sculptures and other objects of art, which are recognised as works of art, as well as antique objects shall be accounted in the account "1236 Antique and other objects of culture and art". Also the objects of culture and art in the composition of museum holdings registered in accordance with the procedures laid down in law, which are not accounted in the accounts of other property, plant and equipment according to the utilisation thereof, regardless of the value thereof, shall be accounted in this account.

45. Previously non-classified valuables, collections and articles of jewellery shall be accounted in the account "1237 Other valuables".

46. Computers, servers, photocopiers, fax machines, telephones, telephone exchanges and other office equipment and devices thereof shall be accounted in the account "1238 Computer hardware, communication and other office equipment". Computer software, without which computers and servers cannot operate, may also be accounted in this account.

47. Previously non-classified property, plant and equipment shall be accounted in the account "1239 Previously non-classified property, plant and equipment".

48. Costs, which are related to the construction or building of a particular object until the day when object is put into use (service), shall be accounted in the account "1240 Construction of the property, plant and equipment and unfinished construction". Costs of installations and machinery, which have been received, but are not yet installed and put into use, may also be accounted in this account.

49. Costs, which are related to the construction of a particular property, plant and equipment until putting into use (service) thereof and the amount of the received, but not installed property, plant and equipment until putting into use thereof shall be accounted in the account "1241 Construction of property, plant and equipment".

50. Construction costs until putting into use (service) of the property, plant and equipment shall be accounted in the account "1242 Unfinished construction".

51. State and local government non-current assets, which are transferred for holding to capital companies, port administrations or derived public persons, shall be accounted in the accounts "1251 State and local government land transferred for holding", "1252 State and local government buildings and structures transferred for holding" and "1259 Other property of the State and local government transferred for holding" of the group of accounts "1250 State and local government property transferred for holding".

52. Underground assets, permanent plantations (orchards, plantings of regularly producing trees and bushes, parks, forest stands) and other similar assets, to which renewal and changes of value are characteristic as a result of growing, shall be accounted in the account "1260 Biological and underground assets".

53. Explored inventory of mineral deposits, which are located under the surface of ground and are economically usable, taking into account present technologies and the relevant prices, shall be accounted in the account "1261 Underground assets".

54. Trees (including vines and bushes), which are grown for collection of a harvest, shall be accounted in the account "1262 Orchards and other plantings of trees that produce regularly".

55. Forest stands the value of which changes as a result of growing thereof shall be accounted in the account "1263 Forest stands".

56. Biological and underground assets of State and local governments, which are transferred for holding to capital companies, port administrations or derived public persons, shall be accounted in the account "1264 State and local government biological and underground assets transferred for holding".

57. Parks, permanent plantings and other similar assets, the value of which changes as a result of growing thereof and which are not considered underground assets, forest stands, orchards and other plantings of trees that produce regularly, shall be accounted in the account "1269 Other biological assets".

58. Capital investments in buildings and other property, plant and equipment (reconstruction, improvement, renewal of buildings), which are not in possession of the institution, if such investments are permitted in rental, lease or management contracts or are provided in investment projects, shall be accounted in the account "1270 Non-current assets in leased property, plant and equipment". The relevant investments shall be accounted as improvements of leased property.

59. Prepayments for the acquisition of property, plant and equipment shall be accounted in the account "1280 Prepayments for property, plant and equipment".

60. Paid prepayments for the acquisition of land, buildings and structures shall be accounted in the account "1281 Prepayments for land, buildings and structures".

61. Paid prepayments for the acquisition of equipment and machinery shall be accounted in the account "1282 Prepayments for technological equipment and machinery".

62. Paid prepayments for the acquisition of vehicles, computer hardware, communications and office equipment, the library fund, works and objects of art and other previously non-classified property, plant and equipment shall be accounted in the account "1283 Prepayments for other property, plant and equipment".

63. Paid prepayments for the acquisition of biological and underground assets shall be accounted in the account "1286 Prepayments for biological and underground assets".

64. Impairment loss of prepayments for property, plant and equipment shall be accounted in the account "1287 Impairment loss of prepayments for property, plant and equipment".

65. Other previously non-classified paid prepayments shall be accounted in the account "1289 Other prepayments".

66. Depreciation calculated and accumulated for each group of property, plant and equipment shall be accounted in the accounts "1291 Accumulated depreciation of buildings and structures", "1292 Accumulated depreciation of technological equipment and machinery", "1293 Accumulated depreciation of other property, plant and equipment", "1295 Accumulated depreciation of State and local government property transferred for holding" and "1297 Accumulated depreciation of non-current assets in leased property, plant and equipment" of the group of accounts "1290 Accumulated depreciation and impairment of property, plant and equipment".

67. Impairment calculated for property, plant and equipment shall be accounted in the account "1299 Impairment loss of property, plant and equipment".

68. Financial investments, which are intended to be kept for more than one year from the balance sheet date, shall be accounted in the account "1300 Non-current financial investments".

69. Investments in capital companies where a budget institution owns 50 per cent of the capital (subsidiary capital company) or more, and impairment from the evaluation of the capital of related capital companies shall be accounted in the account "1310 Investment in related capital companies".

70. Investments in capital companies where a budget institution owns more than 50 per cent of the capital (subsidiary capital companies), shall be accounted in the account "1311 Investment in related capital companies".

71. Impairment from the evaluation of the capital of related companies shall be accounted in the account "1319 Impairment loss of the shares of related capital companies".

72. Investments in capital companies where a budget institution owns 20-50 per cent of the capital (associated capital company), and impairment from the evaluation of the capital of associated capital companies shall be accounted in the account "1320 Investment in associated capital companies".

73. Investments in capital companies where a budget institution owns 20-50 per cent of the capital (associated capital companies), shall be accounted in the account "1321 Investment in associated capital companies".

74. Impairment from the evaluation of the capital of associated companies shall be accounted in the account "1329 Impairment loss of the shares of associated capital companies".

75. Loans, the repayment time period of which exceeds one year from the balance sheet date, shall be accounted in the account "1330 Non-current loans".

76. Loans issued by a budget institution to related capital companies, the repayment time period of which exceeds one year from the balance sheet date, shall be accounted in the account "1331 Non-current loans to related capital companies".

77. Loans issued by a budget institution to associated capital companies, the repayment time period of which exceeds one year from the balance sheet date, shall be accounted in the account "1332 Non-current loans to associated capital companies".

78. Loans issued by a budget institution, the repayment time period of which exceeds one year from the balance sheet date and which are not accounted in the accounts 1331 and 1332, shall be accounted in the account "1339 Other non-current loans".

79. Financial investments in securities, the time period of retention or maturity of which exceeds one year from the balance sheet date, shall be accounted in the account "1340 Non-current financial investments in securities".

80. Securities issued by Latvia, which are owned by a budget institution and the maturity of which exceeds one year from the balance sheet date, shall be accounted in the account "1341 Non-current financial investments in government securities of Latvia".

81. Non-current securities issued by local governments, which are owned by a budget institution and maturity of which exceeds one year from the balance sheet date, shall be accounted in the account "1342 Non-current financial investments in local government securities of Latvia".

82. Non-current securities (securities, the maturity of which exceeds one year from the balance sheet date) that are not included in the accounts 1341 and 1342 shall be accounted in the account "1349 Other non-current financial investments in securities".

83. Other financial investments (for example, financial investments in international financial institutions, financial investments in the capital of capital companies that are or are not quoted on stock exchanges), intended time period of retention of which exceeds one year from the balance sheet date, shall be accounted in the group of accounts "1350 Other non-current financial investments".

84. Capital shares in international financial institutions (the International Monetary Fund (IMF), the World Bank (WB), the Council of Europe Development Bank (CEDB), the Multilateral Investment Guarantee Agency (MIGA), the European Bank for Reconstruction and Development (EBRD)), if the State has acquired such shares and intends to retain them for more than one year from the balance sheet date, shall be accounted in the account "1351 Non-current financial investments in international financial institutions".

85. Investments in capital of capital companies where a budget institution owns less than 20 per cent of the capital and the shares of which are quoted on a stock exchange, if the State or a local government has acquired such shares and intends to keep them for more than one year from the balance sheet date, shall be accounted in the account "1352 Non-current financial investments in capital of capital companies quoted on a stock exchange".

86. Investments in capital of capital companies where a budget institution owns less than 20 per cent of the capital and the shares of which are not quoted on stock exchanges, if the State or a local government has acquired such shares and intends to keep them for more than one year from the balance sheet date, shall be accounted in the account "1353 Non-current financial investments in capital of capital companies that are not quoted on a stock exchange".

87. Only the State Social Insurance Agency shall use the account "1354 Non-current receivables for second level funded pensions".

87.1 Impairment from the evaluation of other non-current financial investments shall be accounted in the account "1358 Impairment loss of other non-current financial investments".

88. Other previously non-classified financial investments shall be accounted in the account "1359 Other non-current financial investments".

89. [16 October 2012]

90. Prepayments (paid prepayments) for the acquisition of non-current financial investments shall be accounted in the account "1381 Prepayments for shares in related capital companies", "1382 Prepayments for shares in associated capital companies", "1383 Prepayments for securities", "1384 Prepayments for shares in capital of capital companies quoted on a stock exchange", "1385 Prepayments for shares in capital of capital companies that are not quoted on a stock exchange" and "1389 Prepayments for other financial investments" of the group of accounts "1380 Prepayments for non-current financial investments".

91. Impairment loss of loans and prepayments for non-current financial investments, the time period for the settlement of which exceeds one year from the balance sheet date, shall be accounted in the account "1390 Impairment loss of non-current loans and prepayments for non-current financial investments".

91.1 Receivables, the initial time period for the receipt of which is determined as longer than one year from the balance sheet date, as well as impairment loss for such receivables, shall be accounted in the group of accounts "1400 Non-current receivables and impairment loss of non-current receivables".

91.2 Non-current receivables that have occurred within the framework of projects (measures) financed by the European Union policy instruments and other foreign financial assistance shall be accounted in the accounts "1415 Non-current receivables for prepayment of transfers" and "1416 Other non-current receivables for projects (measures) financed by the European Union policy instruments and other foreign financial assistance" of the group of accounts "1410 Non-current receivables for projects (measures) financed by the European Union policy instruments and other foreign financial assistance", separating analytically the receivables of each financing instrument or fund (for example, for projects of the Financial Instrument for Fisheries Guidance, projects of the European Agricultural Guidance and Guarantee Fund, projects of the European Social Fund, projects of the European Regional Development Fund).

91.3 Other previously non-classified non-current receivables shall be accounted in the account "1420 Other non-current receivables".

91.4 Impairment loss of non-current receivables shall be accounted in the account "1490 Impairment loss of non-current receivables".

92. Short-term assets of a budget institution, which are intended for ensuring the operation thereof or for alienation within the framework of operation of the budget institution, shall be accounted in the group of accounts "2100 Inventory".

93. Raw materials and materials, materials that are intended for educational and scientific purposes, food products, medicinal products, medicine, medical materials, household materials, office stationery, heating fuel, fuel, lubricating oils, machinery equipment and spare parts (which are not property, plant and equipment), as well as other previously non-classified raw materials and materials, shall be accounted in the group of accounts "2110 Raw materials and materials".

94. Reagents and chemicals, laboratory utensils that are made of glass and other materials, metals (including precious metals), electro-technical materials, radio materials, photographic accessories, paper for the publication of study programmes, study means and scientific works, experimental animals and other materials for study needs and works of scientific research shall be accounted in the account "2111 Materials for educational, scientific and other purposes".

95. Food products in institutions that ensure catering services shall be accounted in the account "2112 Food products".

96. Medicine, medicinal products, medical materials and dressings, bacteriological, immuno-biological preparations and other similar materials shall be accounted in the account "2113 Medicine, medicinal products and medical materials".

97. Household materials (electric light bulbs, soap, brushes, soap-powder and other household materials), office supplies and office stationery, building materials for current and capital renovation (for example, bricks, slates, cement) used for everyday needs shall be accounted in the account "2114 Household materials and office stationery".

98. All types of heating fuel (firewood, coal, briquettes, peat), fuel, lubricants (petrol, motor oils) and other similar inventory shall be accounted in the account "2115 Heating fuel, fuel, lubricants".

99. Spare parts, which are intended for repair works and change of the used parts (for example, for medical installations, tractors, harvesters, vehicles, computers) and which are not property, plant and equipment, shall be accounted in the account "2116 Machinery equipment and spare parts".

100. Other previously non-classified raw materials and materials (for example, packaging) shall be accounted in the account "2119 Other materials".

101. Costs of such products, which are in the process of being manufactured and the costs of such orders (services supplied), for which revenues have not been recognised yet, shall be accounted in the account "2120 Unfinished products and orders".

102. Manufactured products, goods and non-current assets that are intended for alienation (sale), as well as finished orders, shall be accounted in the account "2130 Finished products, orders and inventory for alienation".

103. Manufactured products (for example, products made in manufacturing (study) workshops of budget institutions, finished printed publications), the manufacturing process of which is terminated, shall be accounted in the account "2131 Finished products".

104. Goods and other inventory, which a budget institution has acquired or which are intended for alienation (sale, transfer) without further processing, shall be accounted in the account "2132 Inventory and non-current assets for alienation". Non-current assets intended for alienation shall also be accounted in this account.

105. Finished scientific and other orders and programmes according to entered into contracts shall be accounted in the account "2133 Finished orders".

105.1 State and local government inventory and non-current assets owned and possessed by a budget institution, which have been transferred for holding to State or local government capital companies, port administrations or derived public persons and are intended for alienation, shall be accounted in the account "2134 State and local government inventory and non-current assets for alienation transferred for holding".

106. Draught and productive animals, livestock, small stock, animal fodder and seeds, as well as other agricultural produce shall be accounted in the account "2140 Agricultural produce".

107. Animals, which a budget institution keeps for agricultural manufacturing purposes, as well as animals for service needs, shall be accounted in the account "2141 Draught and productive animals".

108. Seeds, hay, oats and other types of animal fodder, which are intended for the feeding and maintenance of animals and livestock, shall be accounted in the account "2142 Animal fodder and seeds".

109. Other previously non-classified agricultural produce shall be accounted in the account "2149 Other agricultural produce".

110. State strategic reserves (for example, grain, food reserves) shall be accounted in the account "2150 Strategic reserves".

111. Short-life equipment and other similar equipment shall be accounted in the account "2160 Equipment".

112. Equipment that is intended for ensuring operation of the institution and does not differ from a property, plant and equipment by its functions, and the useful life of which is shorter than one year, and which is not accounted in the account 2162 shall be accounted in the account "2161 Short-life equipment".

113. Clothing, footwear, stage costumes, linen, bedding and similar inventory shall be accounted in the account "2162 Clothing, footwear, linen and bedding".

113.1 State and local government equipment owned and possessed by a budget institution, which has been transferred for holding to State or local government capital companies, port administrations or derived public persons, shall be accounted in the account "2165 State and local government equipment transferred for holding".

114. Equipment that is intended for ensuring operation of the institution and does not differ from a property, plant and equipment by its functions, and which is intended to be used for more than one year, and which is not accounted in the account 2162, shall be accounted in the account "2169 Other equipment".

115. Specialist military equipment and its construction costs necessary for ensuring settlement of military tasks of the National Armed Forces and training related thereto and for development of military skills shall be accounted in the group of accounts "2170 Specialist military equipment and construction of specialist military equipment".

116. Specialist military equipment shall be accounted in accordance with the laws and regulations in the field of defence in the account "2171 Specialist military equipment".

117. Costs associated with the construction of specialist military equipment until putting into use (service) thereof shall be accounted in the account "2179 Construction of specialist military equipment".

118. Prepayments for acquisition of inventory and impairment for prepayments shall be accounted in the group of accounts "2180 Prepayments and impairment for inventory".

119. Prepayments (paid prepayments) for the acquisition of inventory shall be accounted in the account "2181 Prepayments for inventory".

120. Impairment for prepayments (prepayments) for inventory shall be accounted for in the account "2187 Impairment for prepayments for inventory".

121. Impairment calculated for equipment shall be accounted in the account "2190 Impairment loss of inventory".

122. Receivables (debts of debtors), which have occurred in the result of past transactions (events) (for example, receivables regarding the rendered services, receivables regarding alienated goods or property, plant and equipment, receivables regarding non-paid taxes), shall be accounted in the account group "2300 Debtors".

123. Receivables of a budget institution in favour of purchasers and commissioning parties, as well as debts, which have occurred when the institution sold products or goods, performed works or services, shall be accounted in the group of accounts "2310 Receivables in favour of purchasers and commissioning parties".

124. Receivables of a budget institution between budget institutions, derived public persons partly financed from the State budget and institutions that are not financed from the budget within the framework of one institutional sector shall be accounted in the account "2312 Receivables between budget institutions".

125. Receivables of a budget institution between institutions subordinate to the sectoral ministry or institutions subordinate to a local government shall be accounted in the account "2313 Receivables between subordinate budget institutions".

126. Receivables between State and local government budget institutions - between the institutional sector of the general government State structures and the institutional sector of the local government structures, shall be accounted in the account "2314 Receivables between State and local government budget institutions".

127. Allowances and pensions paid in advance shall be accounted in the account "2315 Receivables regarding the remainders of pension and allowance settlements in expenditure institutions". Only the State Social Insurance Agency shall use this account.

128. Receivables in favour of related capital companies, in which the budget institution owns more than 50 per cent of the capital, shall be accounted in the account "2316 Receivables in favour of related capital companies".

129. Receivables in favour of capital companies, in which the budget institution owns 20-50 per cent of the capital, shall be accounted in the account "2317 Receivables in favour of associated capital companies".

130. Receivables in favour of capital companies, in which the budget institution owns less than 20 per cent of the capital, shall be accounted in the account "2318 Receivables in favour of other capital companies".

131. Receivables of a budget institution, which have occurred when selling products, goods or property, plant and equipment, when performing works and rendering services, and which have not been classified previously, shall be accounted in the account "2319 Other receivables in favour of purchasers and commissioning parties".

132. Receivables that have occurred during the implementation process of the relevant projects, separating analytically the receivables of each financing instrument or fund (for example, for projects of the Financial Instrument for Fisheries Guidance, projects of the European Agricultural Guidance and Guarantee Fund, projects of the European Social Fund, projects of the European Regional Development Fund) shall be accounted in the group of accounts "2320 Receivables for projects (measures) financed by foreign financial assistance and the European Union policy instruments".

133. Impairment for receivables the time period for the payment (extinguishment) of which does not exceed one year from the balance sheet date shall be accounted in the account "2330 Allowance account for impairment losses".

134. Impairment for receivables in favour of purchasers and commissioning parties shall be accounted in the account "2331 Impairment for receivables in favour of purchasers and commissioning parties".

135. Impairment for receivables for measures financed by foreign financial assistance and the European Union policy instruments shall be accounted in the account "2332 Impairment for receivables for measures financed by foreign financial assistance and the European Union policy instruments".

136. Impairment for receivables in favour of the employees of a budget institution shall be accounted in the account "2333 Impairment for receivables in favour of personnel".

137. [29 March 2011]

138. Impairment for other receivables shall be accounted in the account "2339 Impairment for other receivables".

139. Receivables for taxes and fees of budget institutions shall be accounted in the account "2340 Receivables for taxes and fees".

140. Receivables for immovable property tax shall be accounted in the account "2341 Receivables for immovable property tax".

141. Receivables for personal income tax shall be accounted in the account "2342 Receivables for personal income tax".

142. Receivables for value added tax shall be accounted in the account "2343 Receivables for value added tax".

143. Other receivables for taxes and fees shall be accounted in the account "2349 Other receivables for taxes and fees".

144. [16 October 2012]

145. Revenues of a budget institution, which are related to preceding periods but the time period for the receipt of which has not been reached yet or for which a corroborative document of debtors has not been recorded, shall be accounted in the account "2361 Accrued interest revenue for deposits and balances in the Treasury", "2362 Other accrued interest revenue for deposits and balances", "2363 Accrued interest revenue for loans", "2364 Accrued revenue from paid services", "2365 Accrued revenue from derived financial instruments" and "2369 Other revenue accrued" of the group of accounts "2360 Accrued revenues".

146. Overpaid taxes and taxes paid in advance shall be separately accounted in the account group "2370 Overpaid taxes" according to the types of taxes, except for overpaid taxes administered by local governments.

147. Overpaid taxes and taxes paid in advance, except for overpaid taxes administered by local governments, shall be accounted in the accounts "2371 Personal income tax", "2372 State social insurance mandatory contributions", "2373 Value added tax" and "2379 Other taxes".

148. Settlements with employees of a budget institution regarding issued prepayments, shortages and other receivables in favour of personnel shall be accounted in the account group "2380 Receivables arising in favour of the personnel".

149. All receivables in favour of the personnel of a budget institution regarding the issued prepayments (for example, for operating expenditures, travel expenditures, measures of investigatory operations, expenditures for provision of measures of investigatory operations) shall be accounted in the account "2381 Prepayments issued to employees".

150. Receivables of a budget institution in favour of employees regarding detected shortages shall be accounted in the account "2382 Receivables for shortages".

151. Other receivables in favour of the personnel of a budget institution (except prepayments issued to employees and settlements for shortages) shall be accounted in the account "2389 Other receivables arising in favour of the personnel".

152. Receivables regarding overpayments to the recipients of social services and other previously non-classified receivables shall be accounted in the account "2390 Other receivables".

153. Receivables regarding overpayments to the recipients of social services shall be accounted in the account "2391 Receivables regarding overpayments to the recipients of social services". Only the State Social Insurance Agency shall use this account.

154. Other previously non-classified receivables shall be accounted in the account "2399 Other previously non-classified receivables".

155. Incurred costs, which are related to subsequent periods, and prepayments (paid prepayments) for services and projects shall be accounted in the group of accounts "2400 Expenditures of subsequent periods and prepayments for services and projects".

156. Expenditures of subsequent periods and prepayments for measures financed by foreign financial assistance and the European Union policy instruments, except for prepayments of transfers, shall be accounted in the group of accounts "2410 Expenditures of subsequent periods and prepayments for projects and measures financed by foreign financial assistance and the European Union policy instruments".

157. Expenditures of subsequent periods and prepayments paid to contractors for services to projects of the Cohesion Fund shall be accounted in the account "2411 Expenditures of subsequent periods for projects of the Cohesion Fund".

158. Expenditures of subsequent periods and prepayments to recipients of financing for projects and measures financed by foreign financial assistance and the European Union policy instruments and implementation thereof (except for expenditures of subsequent periods for the projects of the Cohesion Fund) shall be accounted in the account "2419 Other expenditures of subsequent periods and prepayments for projects and measures financed by foreign financial assistance and the European Union policy instruments".

159. Current costs, which are related to subsequent periods, and prepayments (paid prepayments) for services (except for expenditures of subsequent periods and prepayments for measures financed by foreign financial assistance and the European Union policy instruments) shall be accounted in the account "2420 Expenditures of subsequent periods and prepayments for services and projects".

160. Prepayments paid for services, which a budget institution will receive in subsequent periods, shall be accounted in the account "2421 Prepayments for services".

161. Work remuneration for employees of a budget institution for subsequent periods calculated and paid in accordance with the procedures laid down in laws and regulations shall be accounted in the account "2422 Expenditures of subsequent periods for work remuneration settlements".

162. Social insurance contributions for work remuneration paid to employees of a budget institution, paid pensions, allowances and other payments for social purposes for subsequent periods calculated in accordance with the procedures laid down in laws and regulations shall be accounted in the account "2423 Expenditures of subsequent periods for social settlements".

163. Impairment for prepayments for services shall be accounted in the account "2427 Impairment loss of prepayments for services".

164. Other payments of a budget institution, which are recognised as expenditures in subsequent reporting periods, shall be accounted in the account "2429 Other expenditures of subsequent periods".

164.1 Transfer payments made in advance to another budget institution shall be accounted in the account "2430 Prepaid transfers".

165. Financial investments of a budget institution, which it is possible to sell at any time and which are intended to be kept for a time period not exceeding one year from the balance sheet date, shall be accounted in the account "2500 Short-term financial investments".

166. Investments in capital companies where a budget institution owns more than 50 percent of the capital (subsidiary capital company), if the budget institution has acquired such shares and intends to hold them for a time period not exceeding one year from the balance sheet date, shall be accounted in the account "2510 Investment in related capital companies". Non-current financial investments, which are intended to be alienated (sold), shall also be accounted in this account.

167. Investments in capital companies where a budget institution owns 20-50 per cent of the capital (associated capital companies), if the budget institution has acquired such shares and intends to hold them for a time period not exceeding one year from the balance sheet date, shall be accounted in the account "2520 Investment in associated capital companies". Non-current financial investments, which are intended to be alienated (sold), shall also be accounted in this account.

168. Short-term loans and part of non-current loans issued by a budget institution, the time period of repayment of which does not exceed one year from the balance sheet date, shall be accounted in the group of accounts "2530 Short-term loans and current portion of non-current loans".

169. Short-term loans and part of non-current loans issued by a budget institution to related capital companies, the repayment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "2531 Short-term loans to related capital companies".

170. Short-term loans and part of non-current loans issued by a budget institution to associated capital companies, the repayment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "2532 Short-term loans to associated capital companies".

170.1 Impairment for loans issued by a budget institution, the payment of which is intended within a year from the balance sheet date, shall be accounted in the account "2534 Impairment for the issued short-term loans".

171. Short-term loans and part of non-current loans issued by a budget institution to other capital companies and institutions, the repayment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "2539 Other short-term loans".

172. Short-term securities and share of non-current securities, which are in the ownership of a budget institution and the extinguishment or repayment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account group "2540 Short-term financial investments in securities".

173. Short-term securities and share of non-current securities issued by the State of Latvia, which are in the ownership of a budget institution and the extinguishment or repayment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "2541 Short-term financial investments in government securities of Latvia".

174. Short-term securities and share of non-current securities issued by local governments, which are in the ownership of a budget institution and the extinguishment or repayment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "2542 Short-term financial investments in local government securities of Latvia".

175. Short-term securities (securities, the extinguishment time period of which does not exceed one year from the balance sheet date) in the ownership of a budget institution, which are not included in accounts 2541 and 2542, shall be accounted in the account "2549 Other short-term financial investments in securities". The share of the relevant non-current financial investments in the securities, the repayment time period of which does not exceed one year from the balance sheet date, shall also be accounted in this account.

176. Short-term financial investments in international financial institutions, in the capitals of capital companies quoted and not-quoted on stock exchanges, other short-term financial investments and the share of non-current financial investments of a budget institution, if the budget institution has acquired such investments and intends to hold them for no longer than one year from the balance sheet date, shall be accounted in the group of accounts "2550 Other short-term financial investments".

177. Capital shares in international financial institutions (the International Monetary Fund (IMF), the World Bank (WB), the Council of Europe Development Bank (CEDB), the Multilateral Investment Guarantee Agency (MIGA), the European Bank for Reconstruction and Development (EBRD) and other), if a budget institution has acquired such shares and intends to hold them for no longer than one year from the balance sheet date, shall be accounted in the account "2551 Short-term financial investments in international financial institutions". Non-current financial investments, which are intended to be alienated (sold), shall also be accounted in this account.

178. Investments in the capital of such capital companies where a budget institution owns less than 20 per cent of the capital and shares of which are quoted on a stock exchange, if the budget institution has acquired such shares and intends to hold them for no longer than one year from the balance sheet date, shall be accounted in the account "2552 Short-term financial investments in the capital of capital companies quoted on stock exchanges". Non-current financial investments, which are intended to be alienated (sold), shall also be accounted in this account.

179. Investments in the capital of such capital companies where a budget institution owns less than 20 per cent of the capital and shares of which are not quoted on a stock exchange, if the budget institution has acquired such shares and intends to hold them for no longer than one year from the balance sheet date, shall be accounted in the account "2553 Short-term financial investments in the capital of capital companies that are not quoted on stock exchanges". Non-current financial investments, which are intended to be alienated (sold), shall also be accounted in this account.

180. Only the State Social Insurance Agency shall use the account "2554 Short-term receivables for second level funded pensions".

181. Other previously non-classified short-term financial investments and share of non-current financial investments, the retention or maturity of which does not exceed one year from the balance sheet date, shall be accounted in the account "2559 Other short-term financial investments".

182. Prepayments paid for short-term financial investments shall be accounted in the account "2571 Prepayments for short-term financial investments".

183. Impairment for prepayments for short-term financial investments shall be accounted in the account "2577 Impairment loss of prepayments for short-term financial investments".

184. Cash on hand of a budget institution and current accounts, deposits in financial institutions in breakdown by the types of budgets, as well as such cash which are not the property of the budget institution, but are in the cash on hand or accounts of the budget institution for a definite period of time (for example, the tender/security deposits, election deposits, pensions of persons in assisted-living dwellings, funds alienated from detained persons until the court judgment, receivables, which were established in preceding reporting periods and are to be paid into the State budget revenue, as well as remunerations of State officials for the redemption of gifts in accordance with the procedures laid down in laws and regulations, resources allocated only for State budget institutions by the Cabinet orders from the State privatisation fund, budget resources received from other budget institutions in accordance with the procedures of appropriation according to the financing plan, deposited cash possessed by a customer) shall be accounted in the account "2600 "Cash".

185. Cash of a budget institution on hand shall be accounted in breakdown by the types of budgets in accounts "2611 Assets of the basic budget", "2612 Assets of the special budget", "2613 Donation and gift assets" of the group of accounts "2610 Cash on hand", while resources received by the budget institution, which are not the property thereof, if they are in the cash on hand of the budget institution, shall be accounted in the account "2614 Assets of other budgets".

186. Cash in the current accounts in the Treasury or financial institutions (including accounts, to which payment cards are attracted) shall be accounted in breakdown by the types of budgets in accounts "2612 Assets of the basic budget", "2622 Assets of the special budget" and "2623 Donation and gift assets" of the group of accounts "2620 Current accounts in the Treasury or credit institutions". Cash of the basic activity of derived public persons partially financed from the State budget and institutions not financed from the budget, as well as cash received by the budget institution, which are not the property thereof, if they are in the current accounts of the budget institution, shall be accounted in the account "2624 Assets of other budgets".

187. Term deposits, cash deposits of a budget institution, which are deposited for a definite period of time or other conditions, in breakdown by the types of budgets, shall be accounted in the accounts "2631 Assets of the basic budget", "2632 Assets of the special budget", "2633 Donation and gift assets" of the group of accounts "2630 Term deposits". Cash received by a budget institution, which is not the property thereof, if it is deposited in term deposits, shall also be accounted in the account "2634 Assets of other budgets".

188. Cash en route shall be accounted in breakdown by the types of budgets in accounts "2671 Assets of the basic budget", "2672 Assets of the special budget", "2673 Donation and gift assets" of the group of accounts "2670 Cash en route". Cash, which are not the property of a budget institution, shall also be accounted in the account "2674 Assets of other budgets". Cash en route shall be accounted, if a budget institution receives the cash in the account thereof shortly after the closing of the reporting period and a confirmation that the payment has been performed in the preceding period has been received. In such case the budget institution shall consider that the transaction has taken place in the preceding period and shall recognise the relevant amount as cash en route at the end of the period. Cash en route shall be accounted if it is intended in an agreement that liabilities are to be considered settled only when the addressee has received the cash in the account thereof.

189. Assignations of local governments for the financing of administered budget institutions shall be accounted in the group of accounts "2700 Financing of administered institutions".

190. Assignations of local governments for the financing of budget institutions and authorities shall be accounted in the account "2710 Assignations of local governments to budget institutions".

191. The equity (net assets) of a budget institution, which is determined as a residual interest of the assets of the budget institution after deduction of all liabilities thereof, shall be accounted in the group of accounts "3000 Equity".

192. Revaluation reserves of non-current assets and other reserves of a budget institution shall be accounted in the account group "3300 Reserves".

193. Increase of value that has occurred as a result of the revaluation of non-current assets shall be accounted in the account "3310 Revaluation reserve of non-current assets".

194. Changes in the fair value of financial instruments in the cases where they are accounted in the equity shall be accounted in the account "3320 Revaluation reserve of financial instruments".

195. Increase of value that has occurred as a result of the revaluation of non-current assets (according to the equity method) shall be accounted in the account "3360 Other reserves", if there are changes in the equity of the capital company, which do not affect the result of the reporting period of the capital company (revaluation of property, plant and equipment). Only the initial recognition values of forest stands according to the data of the State Forest Register initially recognised in 2008 shall be accounted in other reserves.

196. Surplus or deficit of the budget implementation of the reporting year and preceding years shall be accounted in the group of accounts "3500 Surplus or deficit of the budget implementation".

197. Surplus or deficit of the budget implementation of the preceding years of the relevant budget type shall be accounted in accounts "3511 Surplus or deficit of the basic budget implementation of the preceding reporting years", "3512 Surplus or deficit of the special budget implementation of the preceding reporting years", "3513 Surplus or deficit of the implementation of donations and gifts of the preceding reporting years" and "3514 Surplus or deficit of the implementation of other budgets of the preceding reporting years" of the group of accounts "3510 Surplus or deficit of the budget implementation of the preceding reporting years".

198. The surplus or deficit of the budget implementation of the reporting year of the relevant budget type shall be accounted in the accounts "3521 Surplus or deficit of the basic budget implementation of the reporting year", "3522 Surplus or deficit of the special budget implementation of the reporting year", "3523 Surplus or deficit of the implementation of donations and gifts of the reporting year" and "3524 Surplus or deficit of the implementation of other budgets of the reporting year" of the group of accounts "3520 Surplus or deficit of the budget implementation of the reporting year".

199. Liabilities, for which the time period and amount is not known precisely, shall be accounted in the account "4000 Provisions". Such liabilities relate to the reporting year or previous year transactions and during the preparation of the report are expected or known, but the value thereof or the date of the occurrence or settlement of the definite liabilities are not known precisely.

200. Provisions for liabilities, for which the amount or time period for settlement is not known precisely, shall be accounted in the account "4200 Provisions for the intended liabilities".

201. Present liabilities of a budget institution, which have occurred as a result of past transactions (events) and for settlement of which the consumption of resources of the budget institution is necessary, shall be accounted in the group of accounts "5000 Creditors".

202. Liabilities of a budget institution, the settlement of which is intended later than within a year from the balance sheet date, shall be accounted in the account group "5100 Non-current liabilities".

203. Borrowings of a budget institution with a settlement time period, which exceeds one year from the balance sheet date, shall be accounted in the group of accounts "5110 Non-current borrowings".

204. Non-current borrowings received from the relevant group of creditors, irrespective of the purpose of use of the borrowing, shall be accounted in the accounts "5111 Non-current borrowings from credit institutions of Latvia", "5112 Non-current borrowings from the Treasury", "5113 Non-current borrowings from foreign institutions" and "5119 Other non-current borrowings". Borrowings received from the Treasury and borrowings, which are issued by the Treasury by attracting financing of international financial institutions, irrespective of the purpose of use of the borrowing, shall be accounted in the account "5112 Non-current borrowings from the Treasury".

204.1 The non-current part of such borrowings, for which a guarantee has been issued previously and liabilities to settle them have arisen, shall be accounted in the account "5114 Previously guaranteed borrowings".

205. [16 October 2012]

206. Liabilities for the received goods and services, the settlement time period of which exceeds one year from the balance sheet date, shall be accounted in the account "5130 Non-current debts to suppliers and contractors".

207. Liabilities for expenditures, which relate to the reporting period, but regarding which corroborative documents have not been received in the reporting period, or similar relatively precisely calculated liabilities the settlement or extinguishment of which is expected later than after one year from the balance sheet date, shall be accounted in the account "5140 Non-current accumulated liabilities".

208. Revenues, which are recognised (received, earned) before the balance sheet date, but which relate to the subsequent periods that will be later than within a year after the balance sheet date, shall be accounted in the account "5150 Non-current revenues of the subsequent periods and prepayments received".

209. Revenues received prior to the balance sheet date for particular services or goods that will be rendered or supplied in subsequent periods shall be accounted in the account "5151 Non-current prepayments received for goods and services".

210. [16 October 2012]

211. [16 October 2012]

212. Donations and gifts received in non-current term, which relate to the revenues of subsequent periods, shall be accounted in the account "5154 Non-current revenues of subsequent periods for the donations and gifts received".

212.1 Transfers, which have been received from another budget institution in advance, and which relate to subsequent periods, except for the transfers referred to in the account 5156, shall be accounted in the account "5155 Non-current liabilities for prepayments of transfers".

212.2 Transfers received from another budget institution in advance for projects the implementation of which is intended later than within a year after the balance sheet date shall be accounted in the account "5156 Non-current liabilities for prepayments of transfers for projects (measures) financed by the European Union policy instruments and other foreign financial assistance".

212.3 Resources received from a foreign partner for projects the implementation or revenue recognition of which is intended later than within a year after the balance sheet date shall be accounted in the account "5157 Non-current liabilities for the foreign financial assistance received".

213. Other previously non-classified non-current revenues of subsequent periods and prepayments received shall be accounted in the account "5159 Other non-current revenues of subsequent periods and prepayments received".

214. [16 October 2012]

215. Other previously non-classified non-current liabilities of a budget institution shall be accounted in the group of accounts "5190 Other non-current liabilities".

216. Finance lease (leasing) liabilities, the settlement time period of which exceeds one year from the balance sheet date, shall be accounted in the account "5191 Non-current finance lease (leasing) liabilities".

216.1 Liabilities in favour of a recipient of financing that have occurred for projects (measures) financed by the European Union policy instruments and other foreign financial assistance, separating analytically the liabilities of each financing instrument or fund (for example, for projects of the Financial Instrument for Fisheries Guidance, projects of the European Agricultural Guidance and Guarantee Fund, projects of the European Social Fund, projects of the European Regional Development Fund) shall be accounted in the account "5192 Non-current liabilities in favour of the recipients of financing for projects (measures) financed by the European Union policy instruments and other foreign financial assistance". Liabilities for transfers and the borrowings received for the implementation of projects financed by the European Union shall not be accounted in this account.

216.2 Non-current liabilities of a budget institution for repayments into the State budget for expenditures, which were performed during the implementation of projects (measures) co-financed by the European Union policy instruments and other foreign financial assistance and which were certified, financed from the co-financing part of the European Union or other foreign financial assistance shall be accounted in the account "5193 Non-current liabilities for repayments into the State budget for projects (measures) financed by foreign financial assistance and the European Union policy instruments".

217. Other non-current liabilities, which are not accounted in the accounts 5111-5193, shall be accounted in the account "5199 Other previously non-classified non-current liabilities".

218. Liabilities of a budget institution, the settlement of which is intended within one year after the balance sheet date, shall be accounted in the group of accounts "5200-5900 Short-term liabilities".

219. Short-term borrowings and the part of non-current borrowings, the settlement time period of which does not exceed one year from the balance sheet date, received from the relevant group of creditors, irrespective of the purpose of use of the borrowing, shall be accounted in the accounts "5211 Short-term borrowings and current portion of non-current borrowings from the credit institutions of Latvia", "5212 Short-term borrowings and current portion of non-current borrowings from the Treasury", "5213 Short-term borrowings and current portion of non-current borrowings from foreign institutions" and "5219 Other short-term borrowings and current portion of non-current borrowings" of the group of accounts "5210 Short-term borrowings and current portion of non-current borrowings". Borrowings received from the Treasury and borrowings, which are issued by the Treasury by attracting financing of international financial institutions, irrespective of the purpose of use of the borrowing, shall be accounted in the account "5212 Short-term borrowings from the Treasury".

219.1 Such short-term borrowings and current portion of non-current borrowings, for which a guarantee has been issued previously and liabilities to repay them have arisen, shall be accounted in the account "5214 Previously guaranteed short-term borrowings and current portion of non-current borrowings".

220. Short-term liabilities of a budget institution for the received goods and services, liabilities for settlements in favour of the budget (according to the budget types) and other short-term liabilities in favour of the budget, suppliers and contractors shall be accounted in the group of accounts "5310 Short-term liabilities in favour of suppliers and contractors".

221. Liabilities of a budget institution for the received goods and services, the payment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "5311 Liabilities in favour of suppliers and contractors".

222. Liabilities of a budget institution between budget institutions, derived public persons partly financed from the State budget and institutions that are not financed from the budget within the framework of one institutional sector shall be accounted in the account "5312 Liabilities between budget institutions".

223. Liabilities of a budget institution between institutions subordinate to the sectoral ministry or institutions subordinate to a local government shall be accounted in the account "5313 Liabilities between subordinate budget institutions".

224. Liabilities between State budget institutions and local government budget institutions - between the institutional sector of the general government State structures and the institutional sector of the local government structures, shall be accounted in the account "5314 Liabilities between State and local government budget institutions".

225. Settlements to the State Social Insurance Agency and other budget institutions for the disbursement of pensions and allowances shall be accounted in the account "5315 Liabilities for remainder of pension and allowance settlements in expenditure institutions".

226. Liabilities of a budget institution in favour of related capital companies (more than 50 per cent of the capital) shall be accounted in the account "5316 Liabilities in favour of related capital companies".

227. Liabilities of a budget institution in favour of associated capital companies (20-50 per cent of the capital) shall be accounted in the account "5317 Liabilities in favour of associated capital companies".

228. Liabilities of a budget institution in favour of other capital companies (less than 20 per cent of the capital) shall be accounted in the account "5318 Liabilities in favour of other capital companies".

229. Liabilities of a budget institution, which are not accounted in the accounts 5311-5317, shall be accounted in the account "5319 Other previously non-classified liabilities in favour of suppliers and contractors".

230. [16 October 2012]

231. Liabilities for expenditures, which are related to the reporting period, but for which a corroborative document has not been received in the reporting period, or similar relatively precisely calculated liabilities the settlement or extinguishment of which is expected within one year from the balance sheet date shall be accounted in the account "5420 Short-term accumulated liabilities".

232. Accumulated liabilities for settlements of a budget institution with employees (for example, accumulated leave payments) shall be accounted in the account "5421 Accumulated liabilities for settlements with employees".

233. Accumulated liabilities of a budget institution regarding calculated taxes and social insurance payments shall be accounted in the account "5422 Accumulated liabilities for settlements for taxes and social insurance payments".

234. Accumulated liabilities for interest payments for borrowings calculated by a budget institution, except for the liabilities accumulated in the account 5425, shall be accounted in the account "5423 Accumulated liabilities for interest payments for borrowings".

235. Accumulated liabilities for settlements of a budget institution with suppliers and contractors (for example, liabilities regarding received goods or services regarding which payment has not been made and a corroborative document has not been received or an official agreement with the supplier does not exist), shall be accounted in the account "5424 Accumulated liabilities for settlements with suppliers and contractors".

236. Accumulated liabilities for interest payments and the service charge for borrowings from the Treasury and the Ministry of Finance shall be accounted in the account "5425 Accumulated liabilities for interest payments and the service charge for borrowings from the Treasury".

237. Other previously non-classified accumulated liabilities of a budget institution (for example, a contractual penalty to be paid by the budget institution in favour of borrowings) shall be accounted in the account "5429 Other accumulated liabilities".

238. [16 October 2012]

239. Liabilities of a budget institution for work remuneration and deductions shall be accounted in the group of accounts "5600 Settlements for work remuneration and deductions (except for taxes)".

240. Liabilities of a budget institution in favour of the personnel as regards work remuneration for the current month shall be accounted in the account "5611 Settlements for work remuneration in the current month".

241. Liabilities of a budget institution regarding deposited (unclaimed) work remuneration of the personnel shall be accounted in the account "5612 Settlements for deposited work remuneration".

242. Deductions from the work remuneration of employees calculated and not yet transferred after court decisions shall be accounted in the account "5621 Deductions according to writs of execution".

243. Insurance payments of the employees calculated and not yet transferred shall be accounted in the account "5622 Settlements for insurance".

244. Deductions from the work remuneration of employees, which are not accounted in the accounts 5621 and 5622 and which are due to the employer, shall be accounted in the account "5629 Other deductions".

245. Liabilities of a budget institution for tax and social insurance payments shall be accounted in the accounts "5721 Personal income tax", "5722 State mandatory social insurance contributions", "5723 Value added tax", "5724 Immovable property tax" and "5729 Other taxes" of the group of accounts "5720 Taxes and social insurance payments".

246. Other previously non-classified short-term liabilities of a budget institution shall be accounted in the group of accounts "5810 Other short-term liabilities".

247. Previously non-classified liabilities in favour of the employees of a budget institution, the payment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "5811 Other liabilities in favour of personnel".

248. Liabilities of a budget institution for scholarships, the payment time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "5812 Settlements for scholarships".

249. Liabilities for the received security deposit and other cash, which a budget institution has received when organising tenders or auctions, shall be accounted in the account "5813 Liabilities for the received security deposit and other cash". Liabilities in favour of election deposits, disbursement of pensions in assisted-living dwellings, funds alienated from detained persons up to the court judgment, or in other cases, shall be accounted.

250. Short-term liabilities or current portion of non-current liabilities of a finance lease (leasing) shall be accounted in the account "5814 Short-term finance lease (leasing) liabilities".

251. Liabilities of a budget institution in favour of the budget, which have occurred as a result of detected shortages, and in favour of receivables, which have been formed in preceding reporting periods and are to be paid in the budget revenues, as well as remuneration of State officials for the redemption of gifts in accordance with the procedures laid down in laws and regulations, shall be accounted in the account "5815 Liabilities in favour of the budget".

252. Operating lease liabilities or current portion of non-current liabilities shall be accounted in the account "5816 Short-term operating lease liabilities".

253. Current portion of non-current liabilities in favour of international and domestic financial institutions shall be accounted in the account "5817 Current portion of other non-current liabilities in favour of financial institutions".

254. Other previously non-classified liabilities, the settlement time period of which does not exceed one year from the balance sheet date, shall be accounted in the account "5819 Other short-term liabilities".

254.1 Liabilities in favour of a recipient of financing that have occurred for projects (measures) financed by the European Union policy instruments and other foreign financial assistance, separating analytically the liabilities of each financing instrument or fund (for example, for projects of the Financial Instrument for Fisheries Guidance, projects of the European Agricultural Guidance and Guarantee Fund, projects of the European Social Fund, projects of the European Regional Development Fund), except for the liabilities for a transfer, shall be accounted in the account "5821 Short-term liabilities in favour of the recipients of financing for projects (measures) financed by the European Union policy instruments and other foreign financial assistance".

254.2 Short-term liabilities of a budget institution for repayments into the State budget for expenditures, which were performed during the implementation of projects (measures) co-financed by the European Union policy instruments and other foreign financial assistance and which were certified, financed from the co-financing part of the European Union or other foreign financial assistance shall be accounted in the account "5822 Non-current liabilities for repayments into the State budget for projects (measures) financed by foreign financial assistance and the European Union policy instruments".

255. Revenues, which are recognised (received, earned) prior to the balance sheet date but relate to subsequent periods during one year from the balance sheet date, shall be accounted in the group of accounts "5910 Revenues of subsequent periods and prepayments received".

256. Revenues received prior to the balance sheet date for definite services or goods that will be rendered or supplied in subsequent periods shall be accounted in the account "5911 Short-term prepayments received for goods and services".

257. Non-disbursed pensions and allowances, which relate to subsequent periods, shall be accounted in the account "5912 Calculated but non-disbursed pensions and allowances".

258. [16 October 2012]

259. Received donations and gifts, which relate to subsequent periods, shall be accounted in the account "5914 Revenues of subsequent periods for the donations and gifts received".

260. The received interest revenues that relate to subsequent periods shall be accounted in the account "5915 Revenues of subsequent periods for interest revenues".

260.1 Funds received from a foreign partner for the implementation of projects financed by the foreign financial assistance, including the European Union policy instruments, shall be accounted in the account "5917 Short-term liabilities for the foreign financial assistance received".

261. Other previously non-classified revenues of subsequent periods and prepayments received, including overpaid taxes administered by local governments, shall be accounted in the account "5919 Other revenues of subsequent periods and prepayments received".

261.1 Transfers received from another budget institution via transfer, which relate to subsequent periods, shall be accounted in the account "5930 Prepaid transfers".

262. Revenues of the basic activity of a budget institution shall be accounted in the group of accounts "6000 Basic activity revenues", according to the classification of the budget revenues.

263. Expenditures of the basic activity of a budget institution shall be accounted in the group of accounts "7000 Basic activity expenditures", according to the classification of the budget expenditures according to the economic categories.

264. Revenues and expenditures that are related to the financial activities of a budget institution and other revenues and expenditures that are not characteristic to the basic activity thereof shall be accounted in the group of accounts "8000 Various revenues and expenditures".

265. Financial revenues and expenditures from the revaluation of transactions accounted in foreign currencies shall be accounted in the groups of accounts "8110 Revenues from currency exchange rate fluctuations" and "8210 Expenditures from currency exchange rate fluctuations". Such revenues and expenditures shall be classified according to the budget types. Revenues and expenditures from currency exchange rate fluctuations shall be included in the budget group, to which the accounted asset or liabilities relate.

266. Interest revenues and expenditures according to the budget types shall be accounted in the groups of accounts "8120 Interest revenues" and "8220 Interest expenditures".

267. Revaluation or sales revenues or expenditures from the trade of securities and sale of capital shares shall be accounted in the groups of accounts "8130 Revenues from the sale of capital shares, trade and revaluation of securities" and "8230 Expenditures from the sale of capital shares, trade and revaluation of securities".

268. Results which occur when performing accounting of investments according to the equity method, and revenues from the excess of shares or reversal of the impairment loss shall be accounted in the group of accounts "8140 Revenues from the revaluation or excess of non-current financial investments".

269. Revenues from the recognition of financial investments in the fair value, investing a non-financial asset of the institution, shall be accounted in the account "8150 Revenues from a property investment in related and associated capital companies".

269.1 [6 August 2013]

269.2 Revenues from converting the balance of accounts shall be accounted in the account "8180 Financial revenues from the introduction of euro", if:

269.2 1. the balance of account of the balance sheet asset, which is disclosed in the report for 2013 and converted to euros, is greater than the actual balance in euros of the accounting units forming it;

269.2 2. the balance of account of the balance sheet passive, which is disclosed in the report for 2013 and converted to euros, is lower than the actual balance in euros of the accounting units forming it.

269.3 Other previously non-classified financial revenues or expenditures shall be classified in the accounts "8190 Other financial revenues" and "8290 Other financial expenditures".

269.4 Expenditures from converting the balance of accounts shall be accounted in the account "8280 Financial expenditures from the introduction of euro", if:

269.4 1. the balance of account of the balance sheet asset, which is disclosed in the report for 2013 and converted to euros, is lower than the actual balance in euros of the accounting units forming it;

269.4 2. the balance of account of the balance sheet passive, which is disclosed in the report for 2013 and converted to euros, is greater than the actual balance in euros of the accounting units forming it.

270. Expenditures, which occur when performing the accounting of investments according to the equity method, and from the impairment loss, shall be accounted in the account "8242 Expenditures from revaluation and impairment of non-current financial investments".

271. [16 October 2012]

272. [16 October 2012]

273. [16 October 2012]

274. [16 October 2012]

275. Revenues and expenditures of an institution from tangible and intangible values received and transferred without consideration shall be accounted in the accounts "8410 Revenues from values received and transferred without consideration" and "8420 Expenditures from values received and transferred without consideration" of the group of accounts "8400 Values received and transferred without consideration".

276. Revenues from the receipt and transfer of values without consideration between budget institutions, institutions not financed from the budget and from derived public persons partially financed from the State budget within the framework of one institutional sector shall be accounted in the account "8411 Revenues from the receipt and transfer of values without consideration between budget institutions".

277. Revenues from the receipt and transfer of values without consideration between institutions subordinate to the sectoral ministry or a local government shall be accounted in the account "8412 Revenues from the receipt and transfer of values without consideration between subordinate budget institutions".

278. Revenues from the receipt and transfer of values without consideration between State and local government budget institutions shall be accounted in the account "8413 Revenues from the receipt and transfer of values without consideration between State and local government budget institutions".

279. Revenues from the receipt and transfer of values without consideration from other legal and natural persons shall be accounted in the account "8414 Revenues from the receipt and transfer of values without consideration from other persons".

280. Expenditures from the receipt and transfer of values without consideration between budget institutions, institutions not financed from the budget and from derived public persons partially financed from the State budget within the framework of one institutional sector shall be accounted in the account "8421 Expenditures from the receipt and transfer of values without consideration between budget institutions".

281. Expenditures from the receipt and transfer of values without consideration between institutions subordinate to the sectoral ministry or a local government shall be accounted in the account "8422 Expenditures from the receipt and transfer of values without consideration between subordinate budget institutions".

282. Expenditures from the receipt and transfer of values without consideration between State and local government budget institutions shall be accounted in the account "8423 Expenditures from the receipt and transfer of values without consideration between State and local government budget institutions".

283. Expenditures from the receipt and transfer of values without consideration from other legal and natural persons that have not been classified previously shall be accounted in the account "8424 Expenditures from the receipt and transfer of values without consideration from other persons".

284. Other previously non-classified revenues and expenditures of a budget institution shall be accounted in the group of accounts "8500 Other revenues" and "8600 Other expenditures".

285. The group of accounts "8510 Revenues from the sale of intangible assets and property, plant and equipment intended for alienation" shall be used when accounting revenues from the sale of intangible assets and property, plant and equipment.

285.1 The group of accounts "8610 Value of intangible assets and property, plant and equipment derecognised" shall be used when accounting written-off, liquidated and alienated (except those transferred without consideration) intangible assets and property, plant and equipment.

286. Revenues that are recognised when selling inventory, if the acquired funds are not intended to be included in the State budget, shall be accounted in the account "8520 Revenues from the sale of inventory", while expenditures that are recognised when derecognising alienated inventory shall be accounted in the account "8620 Expenditures from the sale of inventory".

287. Revenues, which occur if a budget institution does not have to repay any of the liabilities thereof (for example, capitalisation of taxes, extinguishment of debts), shall be accounted in the account "8530 Revenues from the extinguishment of liabilities".

288. Differences between the actual and accounting data detected during an inventory shall be accounted in the accounts "8541 Surplus of intangible assets and property, plant and equipment", "8542 Surplus of financial investments", "8543 Surplus of inventory", "8544 Surplus of debtors", "8549 Other surpluses" of the group of accounts "8540 Surplus detected during inventories", and in the accounts "8641 Shortages of intangible assets and property, plant and equipment", "8642 Shortages of financial investments", "8643 Shortages of inventory", "8644 Shortages of debtors", "8649 Other shortages" of the group of accounts "8640 Shortages detected during inventories".

289. Cash shortages of a budget institution detected during an inventory shall be accounted in the account "8649 Other shortages".

290. The groups of accounts "8550 Revenues from the reduction of impairment loss and provisions" and "8650 Expenditures for the recognition of impairment loss and provisions" shall be used for the recognition of impairment loss of receivables and prepayments and for the accounting of revenues from the reduction of impairment loss.

291. Expenditures from the writing-off of receivables, which are not to be recovered and the collection of which is impossible, and the extinguishment of loans issued shall be accounted in the group of accounts "8630 Expenditures from the writing-off of receivables and extinguishment of loans".

292. Values of the assets that have not been accounted earlier, recognising them in the accounting of a budget institution, shall be accounted in the accounts "8581 Revenues from the initial recognition of intangible assets and property, plant and equipment", "8582 Revenues from the initial recognition of financial investments in the balance sheet of the institution", "8589 Revenues from the initial recognition of other non-current assets in the balance sheet of the institution" of the group of accounts "8580 Revenues from the initial recognition of non-current assets in the balance sheet of the institution" and in the account "8570 Revenues from the initial recognition of inventory in the balance sheet of the institution".

293. Transactions, the accounting of which is not particularly intended in any of the specified accounts, shall be accounted in the accounts "8590 Other previously non-classified revenues" and "8690 Other previously non-classified expenditures".

294. Revenues that occur from the updating of the value of forest stands when performing a forest inventory shall be accounted in the account "8591 Revenues from the increase of the value of forest stands".

295. Revenues that occur from the reduction of the revaluation reserve of non-current assets shall be accounted in the account "8592 Revenues from the reduction of the revaluation reserve of non-current assets".

295.1 Revenues from the reversal of the impairment of non-current assets (except for non-current financial investments) shall be accounted in the account "8593 Revenues from the reversal of the impairment of non-current assets".

296. Other previously non-classified revenues shall be accounted in the account "8599 Other previously non-classified revenues".

297. Expenditures that are recognised, determining impairment of the asset value, shall be accounted in the accounts "8691 Expenditures from the impairment of intangible assets and property, plant and equipment", "8692 Expenditures from the impairment of financial investments", "8693 Expenditures from the impairment of equipment".

298. Other previously non-classified expenditures shall be accounted in the account "8699 Other previously non-classified expenditures".

299. Non-current assets (property, plant and equipment and intangible assets) and inventory that are in the use of a budget institution according to the operating lease and lending agreements shall be accounted in the sub-balance sheet account "Leased assets".

299.1 Contingent assets of a budget institution, which can occur as a result of past events and the existence of which will be approved only after one or more such future events or absence of such events, which cannot be controlled by the budget institution, shall be disclosed in the sub-balance sheet account "Contingent assets". Contingent assets shall be recognised if there is a probability of increase of economic benefits and service potential at the institution. Following the approval of such conditions and the reliable assessment of the asset value, the asset and revenues associated with it shall be disclosed in the balance sheet of the institution, reducing the value of the contingent assets disclosed in the sub-balance sheet.

300. In the sub-balance sheet account "Receivables for dividends and payments to be received for the utilisation of capital shares" information shall be disclosed regarding receivables for dividends and payments to be received for the use of the capital shares, which:

300.1. have been approved after the balance sheet date and are not included in the financial report of the reporting year as revenues, if the investment is accounted according to the cost method;

300.2. have been approved after the balance sheet date and the financial investment has not been reduced, if the investment is accounted according to the equity method.

301. The calculated contractual penalty and fine to be received, which has not been received prior to the balance sheet date, and receivables that have not been accounted in the balance sheet, from the day when a budget institution acquires lawful rights to collect the relevant contractual penalty and fine, shall be disclosed in the sub-balance sheet account "Contractual penalties and fines to be received".

302. The value according to the carrying amount of the asset on the day when it was alienated by illegal means shall be disclosed in the sub-balance sheet account "Receivables for assets alienated by illegal means".

302.1 Other previously non-classified contingent assets shall be disclosed in the sub-balance sheet account "Other assets of the sub-balance sheet".

303. The amount of future liabilities for the concluded agreements in the amount of non-fulfilled transactions at the balance sheet date regarding the projects financed by foreign financial assistance and the European Union policy instruments shall be disclosed in the sub-balance sheet account "Future payments in accordance with agreements entered into regarding projects financed by foreign financial assistance and the European Union policy instruments".

304. The amount of future liabilities for the concluded agreements regarding non-current assets and acquisition of specialist military equipment in the amount of non-fulfilled transactions at the balance sheet date (except for the amount of future liabilities for projects financed by foreign financial assistance and the European Union policy instruments) shall be disclosed in the sub-balance sheet account "Future liabilities and payments according to agreements and management decisions on the acquisition and construction of non-current assets and specialist military equipment, except for those that have been entered into regarding projects financed by foreign financial assistance and the European Union policy instruments".

304.1 Future liabilities and payments of an institution according to agreements and management decisions on the acquisition and construction of land, buildings and structures shall be accounted in the sub-balance sheet account "Acquisition and construction of land, buildings and structures". Contingent liabilities and payments shall be disclosed in the amount of non-fulfilled transactions at the balance sheet date.

304.2 Future liabilities and payments of an institution according to agreements and management decisions on the acquisition and construction of non-current assets, except for the acquisition of land, construction of buildings and structures, shall be accounted in the sub-balance sheet account "Acquisition and construction of other non-current assets". Contingent liabilities and payments shall be disclosed in the amount of non-fulfilled transactions at the balance sheet date.

304.3 Future liabilities and payments of an institution according to the agreements and management decisions on the acquisition and construction of specialist military equipment shall be accounted in the sub-balance sheet account "Acquisition and construction of specialist military equipment". Contingent liabilities and payments shall be disclosed in the amount of non-fulfilled transactions at the balance sheet date.

304.4 The amount of future liabilities for the concluded non-cancellable agreements regarding the acquisition of goods and services shall be disclosed in the sub-balance sheet account "Future liabilities and payments according to agreements and management decisions on the acquisition of goods and services, except for those that have been entered into regarding projects financed by foreign financial assistance and the European Union policy instruments and the lease". Future liabilities and payments shall be disclosed in the possible payment amount at the balance sheet date, which would have occurred if the agreements were cancelled.

304.5 Corroborative documents of prepayments received by an institution at the balance sheet date shall be accounted in the sub-balance sheet account "Received, but unpaid corroborative documents of prepayments".

305. The total amount of the future minimum lease payments of an institution at the balance sheet date, which would have been paid for the non-cancellable leases if the lease agreements were cancelled, shall be disclosed in the sub-balance sheet account "Future lease payments".

306. Within the meaning of this Regulation the minimum lease payments shall be payments during the lease term, which shall be paid by the lessee or which can be requested from the lessee (except for the possible lease payment, service costs and taxes, which are paid by the lessor and which are to be reimbursed to the lessor), together with:

306.1. for the lessee - any amount, which have been guaranteed by the lessee or a person associated with the lessee;

306.2. for the lessor - any remaining value, which has been guaranteed to the lessor by the lessee or a person associated with the lessee, or a non-associated third party that is financially capable of fulfilling obligations according to the guarantee;

306.3. payments during the lease term and the payment of the asset purchase, if the lessee has a possibility to purchase the asset for the price that could be sufficiently lower than the fair value at the date when such a possibility may be used, and there is a reasonable certainty that the lessee will use this possibility.

307. Within the meaning of this Regulation a non-cancellable lease shall be a lease that is cancellable only:

307.1. upon the occurrence of some remote contingency;

307.2. with the permission of the lessor;

307.3. if the lessee enters into a new lease for the same or an equivalent asset with the same lessor; or

307.4. upon payment by the lessee of an additional amount such that, at inception, continuation of the lease is reasonably certain.

308. [29 March 2011]

309. The amount of contingent liabilities at the balance sheet date, which would have been paid for the guaranteed borrowing if the borrower would not repay it, shall be disclosed in the sub-balance sheet account "Guarantees issued".

310. Other previously non-classified contingent liabilities shall be disclosed in the sub-balance sheet account "Other liabilities of the sub-balance sheet".

Minister for Finance E. Repše

 

Annex 2
Cabinet Regulation No. 1486
15 December 2009
[21 March 2011]

Depreciation Norms

I. Categories, Groups and Sub-groups of Property, Plant and Equipment for Determining Depreciation Norms

Category, group and sub-group number Category, group and sub-group name Useful life (years) Depreciation norm (% per year)
1. Buildings and structures    
1.1. Residential and non-residential buildings    
1.1.1. Monolithic buildings with reinforced concrete or concrete frame 150 0.67
1.1.2. Stone buildings 100 1
1.1.3. Log buildings 50 2
1.1.4. Prefabricated wood or metal panel buildings, timber framework buildings 30 3.33
1.1.5. Light construction buildings and other buildings 15 6.67
1.2. Transport structures    
1.2.1. Metal, reinforced concrete, stone bridges, traffic overpasses and tunnels 100 1
1.2.2. Ports, navigable channels and berths 50 2
1.2.3. Railway and street railway tracks 30 3.33
1.2.4. Constructions of a motor road bed with bituminous concrete or other black surfacing, cement concrete surfacing or pavement, wooden bridges 20 5
1.2.5. Constructions of a street bed, aerodrome runways, forest roads, railway and street railway equipment 15 6.67
1.2.6. Constructions of a motor road bed with gravel surfacing or macadam, equipment of motor roads and streets 10 10
1.3. Engineering structures (except transport structures)    
1.3.1. Impoundment structures and land amelioration systems 50 2
1.3.2. Communication and transmission lines, oil and gas pipelines, gutters, collecting ditches, irrigation peninventory 30 3.33
1.3.3. Waterpipe, heating main, sewerage network and wastewater constructions and pipelines, perimeter ditches and drainage ditches 20 5
1.3.4. Sports, recreational structures, other structures and buildings 15 6.67
2. Technological equipment and machinery    
2.1. Technological equipment and machinery 10 10
2.2. Instruments, accessories and equipment of installations and machinery 5 20
3. Other property, plant and equipment    
3.1. Vehicles    
3.1.1. Watercraft, railway propulsion equipment, the rolling stock of railway and trams 20 5
3.1.2. Aircraft 15 6.67
3.1.3. Buses, trolleybuses, lorries, cars and other vehicles 10 10
3.2. Computer hardware, communications and office equipment 5 20
3.3. Furniture, office furnishings and other property, plant and equipment 10 10

II. Description of Categories, Groups and Sub-groups of Property, Plant and Equipment

Category 1 "Buildings and structures" - residential, non-residential buildings, transport and engineering structures:

Group 1.1 "Residential and non-residential buildings" - residential and non-residential buildings:

Sub-group 1.1.1 "Monolithic buildings with reinforced concrete or concrete frame" - reinforced concrete or metal frame buildings with stone cladding;

Sub-group 1.1.2 "Stone buildings" - stone buildings with stone or concrete foundation, stone (brick), large-block, large-panel, suspended curtain wall constructions, slag concrete, light brick or light block walls, reinforced concrete, brick or mixed (wooden and reinforced concrete) settlings and reinforced concrete and/or brick vaults in steel beams;

Sub-group 1.1.3 "Log buildings" - log buildings with concrete strip foundation, log, timber or mixed-type (brick and wooden) wall and wooden settlings;

Sub-group 1.1.4 "Prefabricated wood or metal panel buildings, timber framework buildings" - prefabricated wood or metal panel buildings and timber framework buildings with strip or stone pile, concrete or wooden foundations, wooden panel or metal walls and wooden or metal settlings; and

Sub-group 1.1.5 "Light construction buildings and other buildings" - light construction wooden, metal or plastic buildings, temporary buildings and other buildings not classified previously;

Group 1.2 "Transport structures" - transport structures:

Sub-group 1.2.1 "Metal, reinforced concrete, stone bridges, traffic overpasses and tunnels" - metal, reinforced concrete and stone constructions of bridges, traffic overpasses and tunnels;

Sub-group 1.2.2 "Ports, navigable channels and berths" - port building, berth and jetty constructions, and navigable channels;

Sub-group 1.2.3 "Railway and street railway tracks" - railway and street railway track constructions (also earth structure), except railway equipment;

Sub-group 1.2.4 "Constructions of a motor road bed with bituminous concrete or other black surfacing, cement concrete surfacing or paved roads, wooden bridges" - motor road beds, bituminous concrete or other black settling, cement concrete settling or paved road of motor roads, road transport parking places, pedestrian ways, wooden bridge constructions;

Sub-group 1.2.5 "Constructions of a street bed, aerodrome runways, forest roads, railway and street railway equipment" - street constructions (also earth structures) of all types of surfacing (for example, bituminous concrete, gravel), aerodrome runway constructions (also earth structures), aerodrome equipment, forest roads for forestry needs, railway and street railway track equipment, except for street equipment and technological installations of railway tracks;

Sub-group 1.2.6 "Constructions of a motor road bed with gravel surfacing or macadam, equipment of motor roads and streets" - motor road beds, motor road gravel surfacing or macadam, road transport stops, pedestrian ways, motor road and street equipment (for example, road signs, signalling poles, barriers, devices regulating the traffic);

Group 1.3 "Engineering structures (except transport structures)" - all types of engineering structures, except transport structures;

Sub-group 1.3.1 "Impoundment structures and land amelioration systems" - dikes, dams, other impoundment structures and constructions thereof, tile and plastic drain systems, spillways, chutes, siphons, hydrometric station structures, collectors of large diameter, culverts, drainage (polder) and stationary irrigation pumping stations, protective dikes and irrigation channels;

Sub-group 1.3.2 "Communication and transmission lines, oil and gas pipelines, gutters, collecting ditches, irrigation peninventory" - electric cables and communications cables and service buildings thereof (for example, transformer stations and substations, telegraph-poles), relay systems, radio and television or cable networks, retransmission towers and aerials, telecommunications masts and infrastructure of radio communications, pipelines, gutters, collecting ditches, irrigation peninventory of petroleum products, gas, chemical and other products and constructions thereof;

Sub-group 1.3.3 "Waterpipe, heating main, sewerage network and wastewater constructions and pipelines, perimeter ditches and drainage ditches" - waterpipe, sewerage and heating main pumping stations, containers, reservoirs, wells, chambers, fountains, pipelines for transmission of water, pipelines for hot water, vapour or compressed air, sewerage networks, wastewater collectors and wastewater treatment structures and constructions thereof, perimeter ditches and drainage ditches;

Sub-group 1.3.4 "Sports, recreational structures, other structures and buildings" - open-air sports grounds, open-air stages and other sports and recreational structures, (except for closed-type sports and recreational buildings), as well as other engineering structures not classified previously.

Category 2 "Technological equipment and machinery" - technological equipment and machinery:

Group 2.1 "Technological equipment and machinery" - technological equipment, measuring equipment, regulating devices, laboratory and medical equipment, as well as other equipment and machinery;

Group 2.2 "Instruments, accessories and equipment of installations and machinery" - instruments, accessories and equipment of installations and machinery.

Category 3 "Other property, plant and equipment" - other property, plant and equipment not classified previously:

Group 3.1 "Vehicles" - vehicles for carriage of cargo or people;

Sub-group 3.1.1 "Watercraft, railway propulsion equipment, the rolling stock of railway and trams" - marine and river cargo or passenger ships, ferries, watercraft of special significance (except small-size vessels), all types of railway propulsion equipment and all types of railway and tram rolling stock;

Sub-group 3.1.2 "Aircraft - airplanes, helicopters, paragliders and other aircraft;

Sub-group 3.1.3 "Buses, trolleybuses, lorries, cars and other vehicles" - buses, trolleybuses, lorries, transport trailers, cars, car trailers and other vehicles not classified previously;

Group 3.2 "Computer hardware, communications and office equipment" - computers and equipment thereof, communications equipment, internal communication networks and other office equipment;

Group 3.3 "Furniture, office furnishings and other property, plant and equipment" - furniture and other office furnishings, except for ventilation, heating and electricity supply installations of the buildings and other property, plant and equipment not classified previously.

 


Translation © 2016 Valsts valodas centrs (State Language Centre)

 
Document information
Status:
No longer in force
no longer in force
Issuer: Cabinet of Ministers Type: regulation Document number: 1486Adoption: 15.12.2009.Entry into force: 01.01.2010.End of validity: 01.01.2019.Publication: Latvijas Vēstnesis, 203, 28.12.2009.
Language:
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