OREANDA-NEWS. November 18, 2008. The Bank of Russia has authorized banks to change their accounting policies concerning securities to minimize losses from a decline in stock prices. The Russian Central Bank’s instruction “On Reclassifying Securities by Valuation Categories” dated November 17 was published on its website. The document is now undergoing registration at the Justice Ministry and it will take effect on the date of its official publication in the Vestnik of the Bank of Russia.

The Central Bank of Russia has allowed lending institutions to reclassify debt and equity securities from the category “valued at fair value through profit and loss” to “available for sale” or “held to maturity” (for debt securities). In addition, banks could reclassify debt securities from “available for sale” to “held to maturity”. Meanwhile, lending institutions will be able to reclassify all securities of an issue or securities with one ID code or those assigned to one valuation category. Banks should reclassify securities prior to December 31, 2008. In the process, securities purchased before July 1, 2008 are to be reclassified at fair price as of July 1, 2008, while stocks acquired after this date will be reclassified at fair price as of the date of purchase.