Information Concerning Accrued and Paid Yields on the Issuer’s Bonds

8.7.2. Information Concerning Accrued and Paid Yields on the Issuer’s Bonds
Information concerning each issue of bonds the yield on which was paid for the five most recently closed reporting years or, if the issuer has operated for less than five years, for each closed reporting year and over the period from the first date of the current year to the last date of the reporting quarter.
Type of security: exchange-traded/commercial bonds
Form of security: certificated bearer bonds
Series: BO-04
Exchange-traded inconvertible interest-bearing certificated bearer bonds, Series BO-04, subject to mandatory centralized custody
Identification number of the issue: 4В02-04-55385-E
Identification number date: April 28, 2014
Identification number assigned by: MICEX Stock Exchange
Quantity of securities of the issue: 10,000,000
Par value of each bond, rubles: 1,000
Total par value of the securities issue, rubles: 10,000,000,000
General information about income from bonds of the issue:
Type of income paid with respect to bonds of the issue (par value, interest (coupon), other): coupon income for the first coupon period
Amount of income payable with respect to bonds of the issue in money terms for one bond of the issue, rubles/foreign currency: 59.09 rubles
Amount of income payable with respect to bonds of the issue in money terms for all bonds of the issue, rubles/foreign currency: 590,900,000 rubles
Deadline (date) for payment of income from bonds of the issue: December 7, 2015
Method of payment of income from bonds of the issue (cash or other property): cash
Total amount of income paid with respect to all bonds of the issue, rubles/foreign currency: 590,900,000 rubles
Share of paid income from bonds of the issue in the total amount of income payable with respect to bonds of the issue, %: 100%
Reasons for the failure to pay income from bonds of the issue if income payable with respect to bonds of the issue fails to be paid or is not paid in full: coupon income was paid in full
Other information specified by the issuer at its discretion about income from bonds of the issue: none
Type of security: exchange-traded/commercial bonds
Form of security: certificated bearer bonds
Series: BO-01
Exchange-traded inconvertible interest-bearing certificated bearer bonds, Series BO-01, subject to mandatory centralized custody
Identification number of the issue: 4В02-01-55385-Е
Identification number date: April 28, 2014
Identification number assigned by: MICEX Stock Exchange
Quantity of securities of the issue: 5,000,000
Par value of each bond, rubles: 1,000
Total par value of the securities issue, rubles: 5,000,000,000
General information about income from bonds of the issue:
Type of income paid with respect to bonds of the issue (par value, interest (coupon), other): coupon income for the first coupon period
Amount of income payable with respect to bonds of the issue in money terms for one bond of the issue, rubles/foreign currency: 59.34 rubles
Amount of income payable with respect to bonds of the issue in money terms for all bonds of the issue, rubles/foreign currency: 296,700,000 rubles
Deadline (date) for payment of income from bonds of the issue: December 21, 2015
Method of payment of income from bonds of the issue (cash or other property): cash
Total amount of income paid with respect to all bonds of the issue, rubles/foreign currency: 296,700,000 rubles
Share of paid income from bonds of the issue in the total amount of income payable with respect to bonds of the issue, %: 100%
Reasons for the failure to pay income from bonds of the issue if income payable with respect to bonds of the issue fails to be paid or is not paid in full: coupon income was paid in full
Other information specified by the issuer at its discretion about income from bonds of the issue: none
8.9. Information Concerning Represented Securities and the Issuer of Represented Securities, Title to Which Is Certified by Russian Depositary Receipts
The issuer did not issue any represented securities, title to which is certified by Russian depositary receipts.
Appendix to the Quarterly Report. Accounting Policy
Appendix 1
to Order of JSC ROSSETI
No. 742 of December 30, 2013
(as amended by Orders of JSC ROSSETI No. 139 of July 24, 2014, and PJSC ROSSETI No. 159 of August 28, 2015, No. 233 of December 31, 2015, and No. 25a of March 17, 2016)
Regulations for the Accounting Policy of PJSC ROSSETI
for Business and Tax Accounting Purposes
1. General Provisions
1.1. PJSC ROSSETI (hereinafter, the “Company”) shall organize and maintain accounting records, prepare accounting statements in accordance with Federal Law No. 402-FZ of December 6, 2011, “On Accounting” (hereinafter, “Federal Law 402-FZ”) and other regulatory documents applicable to accounting.
Business and tax accounting records shall be maintained by the Accounting and Reporting Department headed by the Director of the Accounting and Reporting Department (Chief Accountant).
The accounting policy of the Company shall be formulated by the Director of the Accounting and Reporting Department (Chief Accountant) and shall be subject to approval by the Director General.
Other regulations and orders of the Company with respect to business and tax accounting shall not be inconsistent with these Regulations.
1.2. The Company has the following separate divisions:
• The Company’s branch, Technical Supervision Center, is not a corporate entity, has a standalone balance sheet, has bank accounts, prepares accounting, tax, statistical, and other statements and reports, and acts in accordance with the Branch Regulations and other regulations and orders approved by the Company and the branch.
The branch’s separate divisions do not have standalone balance sheets, and their operating results are included in the balance sheet of the branch.
• The Representative Office of PJSC ROSSETI in the Crimean Federal District is not a corporate entity, does not have a standalone balance sheet, may have a current bank account, and acts in accordance with the Representative Office Regulations and other regulations and orders approved by the Company and the Representative Office.
1.3. Internal control over business transactions is organized in accordance with the Internal Control Policy of PJSC ROSSETI approved by the decision adopted by the Board of Directors of the Company on April 28, 2014 (Minutes of the Meeting No. 151) and in accordance with the regulations and orders issued pursuant to the Company’s Order No. 534 of August 28, 2013, “On the Improvement of the Internal Control System for Business and Tax Accounting and Accounting (Financial) Statement Preparation of PJSC ROSSETI.”
2. Working Chart of Accounts, Workflow Rules, Technology for the Processing of Accounting Information and Preparation of Statements
2.1. The accounting policy documents of the Company shall include these Regulations, a working chart of accounts, forms of primary accounting documents, forms of ledgers for business and tax accounting, a workflow schedule, and the technique for calculating the reserve for future vacation pay.
2.2. The working chart of accounts shall be used for maintaining accounting records. The working chart of accounts of the Company shall be prepared in accordance with the Chart of Accounts approved by Order of the Ministry of Finance of the Russian Federation No. 94n of October 31, 2000, and adjusted for the functionality of the 1C:Accounting 8.1 CORP software used by the Company to keep accounting records.
2.3. The ledgers of the Company shall be prepared in a format supported by the software used by the Company to keep its accounting records subject to the requirements of Federal Law 402-FZ. The Company shall use the ledgers listed in and in the form contained in Annex 4 hereto.
2.4. The Company’s preparation of statements in accordance with Russian accounting standards shall be governed by the Regulations for Accounting “Accounting Statements of Organizations” (Regulations for Accounting 4/99) approved by Order of the Ministry of Finance of the Russian Federation No. 43n of July 6, 1999; the Regulations for Accounting “Cash Flow Statement” (Regulations for Accounting 23/2011) approved by Order of the Ministry of Finance of the Russian Federation No. 11n of February 2, 2011, “On the Forms of Accounting Statements of Organizations”; and Federal Law No. 402-FZ of December 6, 2011, “On Accounting.”
2.5. Entries made in ledgers shall be based on primary accounting documents that specify business transactions and on calculations (statements or records) of the Accounting and Reporting Department.
Employees of the Accounting and Reporting Department shall verify whether primary accounting documents contain all mandatory details when they receive such documents for the purposes of including information contained in primary accounting documents in ledgers.
2.6. To document business transactions, the Company shall use the forms of primary accounting documents listed in and in the form approved by the Company’s regulations and orders.
The forms of documents (including those documenting transactions that involve cash) used as primary accounting documents and prescribed by authorized agencies in accordance with and pursuant to other federal laws shall be mandatory.
Any primary accounting documents written in a foreign language shall be accompanied by their Russian line-by-line translation.
2.7. The principal rules of maintaining accounting records and documenting business transactions shall comply with the Regulations for Accounting and Reporting in the Russian Federation approved by Order of the Ministry of Finance of the Russian Federation No. 34-n of July 29, 1998, as adjusted for certain industry characteristics adopted and reflected in this document and other regulations and orders of the Company.
2.8. The workflow rules of the Company shall be governed by the workflow schedule for the purposes of maintaining accounting and tax records and preparing statements in accordance with Annex 3 hereto. The workflow schedule shall specify the time limits, procedure, and scope for the submission of primary accounting or other documents to the Accounting and Reporting Department by the functions of the Company. The time limits and scope for the submission of the financial and tax statements of the Company to competent supervisory government authorities shall not be established by the workflow schedule and shall be governed by the applicable law.
2.9. The error correction rules are contained in and any errors in accounting and statements shall be disclosed in accordance with Regulations for Accounting 22/10 “Correction of Errors in Accounting and Statements” approved by Order of the Ministry of Finance of the Russian Federation No. 63n of June 28, 2010. In this connection, a material error is an error that, individually or together with other errors, distorts any indicator of an accounting statement item by more than 5%.
2.10. The annual accounting statements of the Company shall be considered and approved by the General Meeting of Shareholders in accordance with Article 48 of Federal Law No. 208-FZ of December 26, 1995, “On Joint-Stock Companies” (hereinafter, “Federal Law 208-FZ”) and the Articles of Association of the Company and shall be submitted within the time limits and at the addresses specified in Article 18 of Federal Law 208-FZ.
2.11. The contents of accounting and tax ledgers and internal financial accounting forms shall be proprietary information. Any persons provided with access to the information contained in these documents shall be obliged to keep such information in confidence. They shall be liable for the disclosure thereof as specified in internal regulations and orders of the Company and the laws of the Russian Federation.
2.12. The right to sign primary accounting documents shall be held by the Company’s executives in accordance with the Company’s directive documents (orders and powers of attorney) to be agreed upon with the Director of the Accounting and Reporting Department (Chief Accountant) of the Company.
2.13. Documents on business transactions involving cash flow (through bank accounts or the cashier's office of the entity) shall be signed by the chief executive of the Company and the Director of the Accounting and Reporting Department (Chief Accountant) or the persons authorized by them under powers of attorney and the Company’s regulations and orders.
2.14. The accounting records for property, liabilities, and other business transactions shall be maintained in rubles and kopecks.
2.15. The Company shall prepare the ROSSETI Group consolidated financial statements in accordance with International Financial Reporting Standards (IFRS).
2.16. In the event that the Director General is changed, accounting records shall be transferred in accordance with the procedure set forth in regulations and orders of the Company.
3. Procedure for Taking an Inventory of Assets and Liabilities
3.1. Any inventory of assets and liabilities shall be taken in accordance with Article 11 of Federal Law 402-FZ and the Guidelines for Taking Inventory of Property and Financial Liabilities approved by Order of the Ministry of Finance of the Russian Federation No. 49 of June 13, 1995.
Any inventory shall be taken by the Company only if required under the laws of the Russian Federation and prescribed by federal and industry standards. The inventory dates and procedure and the list of items subject to inventory taking shall be specified by the Company’s regulations and orders.
3.2. The inventory results (deviations found by inventory between the actually available items and ledgers, decisions on provisioning for doubtful debts, decisions on provisioning for financial investment impairment , etc.) are subject to recording in accounts in the reporting period to which the inventory-taking date relates in accordance with a report of the Company’s Central Inventory Commission.
4. Fixed Asset Accounting
4.1. Fixed asset accounting records shall be maintained in accordance with Regulations for Accounting 6/01 approved by Order of the Ministry of Finance of the Russian Federation No. 26n of March 30, 2001.
4.2. Assets that fulfill the terms and conditions set forth in paragraph 4 of Regulations for Accounting 6/01 “Fixed Asset Accounting” and have a value of not more than 40,000 rubles per unit shall be recognized in accounting records and accounting statements as inventory in Account 10 “Materials” in a separate subaccount. On the date when such assets are transferred for operation or released for production, their value shall be attached to cost accounting accounts (paragraph 7 of Regulations for Accounting 10/99). In order to ensure their safety and organize adequate control over their availability and flow, the off-balance sheet account of inventory items and fixed assets “Fixed assets worth 40,000 rubles or less” shall be used.
4.3. The value of fixed assets shall be depreciated.
Fixed assets shall be depreciated using the straight-line method based on the useful life of these assets. The useful life of fixed assets shall be based on:
• the expected period of using a facility according to expected productivity or capacity;
• expected physical deterioration depending on the operation mode (number of shifts), natural conditions, the impact of aggressive media, and the repair system;
• regulatory, statutory, and other restrictions on the use of a facility (for instance, the lease term).
The useful life shall be determined by the commission on the acceptance of fixed assets, based on technician opinions with due consideration to information contained in technical documents related to facilities.
4.4. The groups of homogenous fixed assets are not revaluated at their current (reinstatement) value.
4.5. Accounting for leased fixed assets shall be done by the Company (lessee) using the asset identification numbers assigned by the 1C:Accounting 8.1 CORP software used by the Company to keep accounting records.
4.6. If one item or more having one designated use or more are a standalone unit of comprising intrinsically combined items with common devices and accessories or common control or common foundations and, therefore, each item can function properly only as part of the unit, then such unit shall be accounted for as a single inventory item.
4.7. If one inventory item is composed of several parts with different useful lives, then each of such parts shall be accounted for as an individual inventory item whether such part can function independently or not.
5. Intangible Asset Accounting
5.1. Intangible asset accounting records shall be maintained in accordance with Regulations for Accounting 14/2007 approved by Order of the Ministry of Finance of the Russian Federation No. 153n of December 27, 2007.
5.2. Intangible assets shall be depreciated using the straight-line method based on the useful life of intangible assets. The useful life shall be determined by the Company’s commission whose members shall be approved by the Company’s regulations and orders.
5.3. Depreciation shall not be accumulated on intangible assets with an indefinite useful life. After inventory taking, the Company on an annual basis shall search for factors preventing reliable determination of the useful life of these assets. If these factors disappear, the Company shall determine the useful life of these intangible assets.
5.4. On an annual basis, the entity shall check whether the useful life of an intangible asset needs to be revised. In the event of significant changes in the duration of use and expected timing of future economic benefits from using an intangible asset, useful life shall be approved by the commission of the Company established under the Company’s regulations and orders.
5.5. Intangible asset depreciation shall be recognized in the accounting books through the accumulation of the amounts concerned in Balance Sheet Account 05 “Intangible asset depreciation.”
5.6. The groups of homogenous intangible assets are not revaluated at their current market value.
6. Financial Investment Accounting
6.1. Financial investment accounting records shall be maintained in accordance with Regulations for Accounting 19/02 approved by Order of the Ministry of Finance of the Russian Federation No. 126n of December 10, 2002.
6.2. The analytical accounting records of financial investments shall be broken down by type of financial investment and facility in which these investments are made (securities issuing entities, other entities in which the organization participates, borrowing entities, etc.).
6.3. A unit of financial investment accounting depending on the characteristics, acquisition and application procedure shall be state registration code, a series or other homogenous set of financial investments.
6.4. Any financial investments whose current market value is not measured shall be accounted for and recognized in accounting records at acquisition value.
6.5. In the disposal of financial investments whose market value cannot be measured, the original value of each unit of financial investment accounting shall apply to promissory notes and the original value of financial investments purchased first (FIFO method) shall apply to shares and bonds.
6.6. For subsequent valuation purposes, financial investments shall be divided into two groups: financial investments whose current market value can be measured in accordance with the procedure specified in these Regulations and financial investments whose current market value cannot be measured.
The current market value of securities means their market price calculated in accordance with the prescribed procedure by a securities trading institutor (whether Russian or foreign).
If current market value cannot be measured for any financial investee as of the balance sheet date, such financial investee shall be recorded in accounting statements at the value measured by the latest appraisal.
The value of financial investments whose current market value can be measured in accordance with the approved procedure shall be adjusted on a quarterly basis as of the last date of the accounting quarter.
Current market value shall apply to the valuation of debt securities.
6.7. Contributions to the authorized (share) capitals of other entities shall be recognized as financial investments of the organization and recorded in the accounting books as the equivalent of actual costs incurred by the investor, i.e. at the value of contributed assets at which they are recorded in the balance sheet of the investor.
6.8. Interest (coupon yield, discount) on securities shall be accrued for each previous reporting year in accordance with the terms and conditions of the agreement (decision on the securities issue) and shall be recorded as other income (expense). The paid (received) accrued coupon yield from the par value of bonds shall be recorded in Subaccount 76.09 “Other settlements with various debtors and creditors.”
6.9. The discount value of extended loans and debt securities shall not be calculated by the Company.
6.10. If any costs associated with the acquisition of securities are not significant as compared with the amount payable to the seller under an agreement, then such costs shall be recognized as other expense in the accounting period during which such securities are entered into the books.
If such costs are significant as compared with the amount payable to the seller under an agreement, then such costs shall be capitalized as part of the original value of securities. Costs shall be deemed significant if they exceed 5% of the value of securities under an agreement.
In the case of the other financial investments, the entire amount of costs shall increase the original value of financial investments.
6.12. In the case of debt securities for which their current market value is not determined, the difference between the original value and the par value shall be recognized evenly as other income or expense until their maturity date in proportion to their income payable in accordance with the terms and conditions of the securities issue.
7. Inventory Accounting
7.1. Inventory accounting records shall be maintained in accordance with Regulations for Accounting 5/01 approved by Order of the Ministry of Finance of the Russian Federation No. 44n of June 9, 2001.
7.2. Inventory shall be accepted for accounting at actual cost.
7.3. Inventory released for production, used for repair operations, capital construction or disposed of in any other manner shall be valued at the production cost of each unit. The production cost of each unit shall include all expenses in connection with the acquisition of inventory.
7.4. The analytical accounting records of materials shall be maintained using cash method of accounting. Contractual prices shall be used as book prices.
7.5. A stock number shall be a unit of inventory.
7.6. Operations related to the procurement and acquisition of material resources shall be recognized in the accounting records without using Account 15 “Procurement and acquisition of materials” and Account 16 “Materials cost deviation.”
7.7. Transportation and procurement expenses shall be included in the actual production cost of material.
7.8. Fittings, tools, fixtures with a useful life of less than one year shall be recognized as inventory in Account 10 “Materials.”
7.9. Personal protective equipment (PPE) shall be subject to accounting in accordance with the procedure set forth in the Accounting Guidelines for Special Tools, Special Gear, Special Equipment, and Special Clothing approved by Order of the Ministry of Finance of the Russian Federation No. 135n of December 26, 2002.
The list of PPE issued to employees, its useful life and wear rate, and the procedure for their issuance and return shall be determined and approved by the Company’s regulations and orders.
Special clothing, special footwear, and other personal protective equipment, irrespective of their value and useful life, shall be recognized as inventory in Account 10 “Materials.”
PPE entered into the books shall be recognized in Subaccount 10.10 “Special gear and special clothing in stock”; PPE brought into operation (issued to employees) shall be recognized in Subaccount 10.11 “Special gear and special clothing in use” (in Account 10 “Materials”).
The value of PPE shall be put on the debit side of the relevant production cost accounts at the time when PPE is brought into operation (issued to employees) in accordance with the following procedure:
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the entire value of PPE with an operating life of 12 months or less shall be depreciated on a one-time basis; in order to control the fact that special clothing brought into operation is in good condition, such special clothing shall be accounted for off-balance sheet in Account MP.02 “Special clothing in use”;
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the straight-line method of depreciation shall be applied to PPE with an operating life of more than 12 months based on its useful life determined at the approved rates, starting from the 1st day in the month immediately following the month during which it is brought into operation.
If the operating life of PPE with depreciated value is extended, PPE in physical terms shall be transferred from Subaccount 10.11 “Special gear and special clothing in use” to off-balance sheet Account MP.02 “Special clothing in use.”
Special clothing shall be written off in off-balance sheet Account MP.02 “Special clothing in use” as a separate accounting unit only in the event of its actual physical retirement. In this regard, the completion of recognizing the value of special clothing as production costs may take place at a time different from the time of its actual physical retirement.
Special clothing shall be accepted and written off by the commission appointed in accordance with the Company’s regulations and orders.
8. Deferred Expense Accounting
8.1. Expenses paid in this reporting period yet used by the Company in its activity during a certain period shall include the following expenses:
payments associated with voluntary and compulsory insurance of property and employees;
payments for the granted right to use intellectual activity results or means of identification made as a fixed one-shot payment under license agreements, franchise agreements, and other similar agreements entered into in accordance with the procedure prescribed in law for a definite term;
expenses associated with software development and implementation.
8.2. Deferred expenses shall be written off evenly during the period to which they relate. The duration of such period shall be determined as of the date on which deferred expenses are recorded in the accounting books.
8.3. The life of deferred expenses whose useful life is not determined shall be defined by the commission established under the Company’s regulations and orders.
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