Glossary

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Depreciated cost of a financial asset or a financial liability: an amount in which a financial asset or a financial liability is measured upon initial recognition after subtracting main debt amount payments, subtracting or adding the amount of accumulated depreciation calculated using the effective interest rate method, that is the difference between the initially specified amount and the amount to be paid within a repayment period after subtracting the depreciation (directly or by using a valuation reserve account) as a result of impairment or inability to collect a debt.

Associated company: a company whose activities are significantly influenced by an investor.

Repurchase payment: a) in case of the lessee, the amount guaranteed by the lessee or a party related to the lessee; and b) in case of the lessor, the residual value guaranteed to the lessor:

• By the lessee.
• By a party related to the lessee.
• By a third party unrelated to the lessor who is financially capable of discharging the obligations under the guarantee.

Gross investment in the lease: a sum of minimum lease payments to be paid to a lessor under a financial lease contract and unguaranteed residual value charged to the lessor.

Report type: a set of configuration objects that define report data, the set of its processing rules (algorithms) as well as print form templates to display.

Temporary differences (TD): differences between the net book value of an asset or a liability in the Statement of Financial Position (balance) and their tax base.

Deductible temporary differences: temporary differences that will result in deductions when determining taxable profit (tax loss) in the future, when the net book value of an asset or a liability is to be recovered or repaid. They eventually result in creation of deferred tax assets.

Cross-holding: a situation in which two companies own shares in each other's share capital.

Intercompany transactions: transactions among companies included in a "group" (between a parent company and its subsidiaries) and transactions among subsidiaries.

Corporate group (or just "group"): a parent company and all its subsidiaries.

Report indicator drill-down group: a company that determines the procedure of drilling down the report indicator value by analytical dimensions.

Goodwill: an asset that represents future economic profits resulting from other assets purchased upon business merging that are not identified or recognized separately.

Investment flow documents: the Investment inflow and Investment outflow documents of 1C:Perform. The documents are displayed in the Investment flows register.

Equity share: any stake a company or an individual has in another company expressed in percent or shares.

Subsidiary: a company controlled by another company.

Report indicator value: a value in a report cell calculated according to specific formulas or procedures. It can be imported from an external source or specified manually.

Foreign tax resident: a company or an individual that is not a tax resident of the Russian Federation.

Investment: an equity share in a company.

Indirect equity share is a share calculated as follows:

1. All hierarchies of an individual's interest in a company through direct share of each previous company (individual) in each subsequent company of the corresponding hierarchy are determined.
2. Direct share of each previous company (individual) in each subsequent company of the corresponding hierarchy is determined.
3. Indirect equity share of one company (individual) in another company of each hierarchy is determined. The indirect equity share is calculated by multiplying the direct equity share of the first two companies (individuals) in the hierarchy. In case of subsequent share, the indirect equity share is calculated by multiplying the resulting product by the next direct equity share in the hierarchy and each subsequent resulting product by each subsequent direct equity share up to the last company in the hierarchy.
4. If there are several participation hierarchies, all the individual's indirect shares in the company determined under subclause 3 are summed up.

Control over a foreign company (TC RF): affecting or the possibility to affect certain decisions made by an individual that controls assets of such company in terms of allocation of acquired profits (income) after taxation according to a proper law or constitutional documents of the company.

Circular ownership: when one company has indirect interests in its own capital through the hierarchies of participation in other companies determined under subclause 1 of clause 3 of Article 105.2 of the Tax Code of the Russian Federation.

Control over an company (TC RF): affecting or the possibility to affect certain company decisions in terms of allocation of acquired profits (income) after taxation due to direct or indirect share in this company, being a party of a contract (agreement) whose subject matter is related to management of this company , or other specific relationships between an individual and this company or other individuals.

Controlling subject of a foreign company (TC RF): an individual or a legal entity whose equity share in the controlled company is more than 25%.

Or an individual or a legal entity whose equity interest in the controlled company (including spouses and underage children for individuals) is more than 10% if the equity interest of all subjects being tax residents of the Russian Federation in this company (including spouses and underage children for individuals) is more than 50%.

Statement consolidation: creating consolidated statements out of separate statements of companies included in a group.

Consolidated financial statements: financial statements of a group in which the assets, liabilities, equity, income, expenses and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity.

Indirect ownership: a situation when a company owns another company not directly, but via a third party that controls the latter either directly or indirectly.

Indirect equity interest: when someone owns shares in the share capital of a company via other companies or organizations.

Controlled foreign company (CFC) is a foreign company that meets both of the following conditions:

1. The controlled company is not a tax resident of the Russian Federation.
2. The controlling subject is a company or an individual that is a tax resident of the Russian Federation.

Closing rate: the current exchange rate at the end of an reporting period.

Parent company: an investor company that controls subsidiaries.

Minimum lease payments: payments within a lease period that are required or can be required from a lessee excluding a conditional lease payment, service costs and taxes to be paid by the lessor or reimbursed to them plus the repurchase payment.

Equity method: a consolidation method where investments are initially recognized at actual costs to be later increased or decreased depending on the investor share in net assets of the investment project. It is usually applied to associated companies and joint ventures.

Monetary items: available cash as well as assets and liabilities to receive or pay. They are expressed in a fixed or determined quantity of currency units.

Acquisition method: a method in which the data of subsidiaries is included in the consolidated financial statements as if the entire group is one company.

Tax resident of the Russian Federation: an individual or a legal entity that meets the requirements specified in Article 242 of the Tax Code of the Russian Federation.

Taxable temporary differences: temporary differences that will form taxable amounts when calculating taxable profit (tax loss) in the future, when the net book value of an asset or a liability is to be recovered or repaid. They eventually result in creation of deferred tax liabilities.

Non-controlling interest (minority interest): a part of the profit (loss) and a part of the subsidiary net assets attributable to an equity interest which is not owned by the parent company either directly or indirectly.

Unguaranteed residual value: a part of the residual value of an asset that is a lease object whose sale is not guaranteed by the lessor or is guaranteed only by a party related to the lessor.

Unrealized gains (losses): profit (loss) from intercompany sales which is not considered as unrealized by the group as there are no sales of the corresponding assets outside the group.

Business unit is an entity which uses both individual or consolidated financial statements: an organization, branch, center of financial responsibility, segment, or group of companies.

Business unit that is not a tax resident: any business unit of a company or a company which is not a legal entity or an individual. For example, a company group, branch, Financial responsibility center, and so on.

Initial direct lease costs: additional costs directly related to the preparation and conclusion of a lease contract.

Consolidation perimeter consists of all business units whose statements are to be consolidated.

Cross-ownership: a case when one company is directly involved in another company, and this other company is involved in the first company. Cross-ownership is a special case of circular ownership.

Full consolidation: a method where subsidiary data is included in the consolidated financial statement as if the whole group was one enterprise.

Direct equity share: unmediated ownership of shares in the share capital of a company.

Report indicator describes the value in a certain report cell. The filling rules for this value are determined during the report development.

Participation hierarchy: a set of the direct interests of investors in other companies.

Direct equity share: the amount of voting shares of a company directly owned by an individual or a share directly owned by a an individual in the authorized (share) capital (fund) of this company. If it is impossible to determine such shares, it is a share directly owned by an individual who participates in this company and determined in proportion to the total number of participants in this company.

Intercompany transaction reconciliation: a procedure of comparing data of the same transactions within a group provided by different business units.

Mixed equity share: a sum of direct and indirect shares.

Joint venture: a business entity where parties controlling the business have rights to its net assets.

Fair value: a potential price of an asset in case of its sale or of a liability in case of its transfer under the transaction between the participants of an organized market at the measurement date.

Interest rate implied in lease contract: a discount rate which makes the aggregated present value of minimum lease payments and unguaranteed residual value equal to the sum of the fair value of an asset which is the lease object and initial direct costs incurred by the lessee if it is used at the start date of the lease relationship.

Ownership structure: a hierarchy among companies in a group based on their equity shares.

Holding company: the company which manages other companies that belong to the group (holding) to effectively run the entire group activities and rationally use the group resources.

Intercompany transaction settlement: identification of the reasons for the existing discrepancies in the data provided by different participants of the same intercompany transactions and making the necessary adjustments to the reporting data to eliminate these discrepancies.

Financial instrument: a contract under which one enterprise acquires a financial asset and another enterprise acquires a liability or an equity instrument.

Forward contract: a binding fixed-term contract under which the customer and seller agree to deliver goods of a specified quality and quantity or currency as of the specified date in the future. The price of the goods, exchange rate and other conditions are fixed at the time of the transaction.

Net investments in the lease: gross investments in the lease discounted using the interest rate implied in the lease contract.

Net realizable value: a selling price minus estimated costs of finished products (services) completion and inventory sale.

Intercompany transaction elimination: an exclusion of the intercompany transaction results that should not be included in the reporting of the group considered as a single company. For example, investments and contributions to the share capital within the group, mutual debts, profits resulting from intercompany sales, mutual payments, and so on.

Report instance: a set of a print form and the corresponding indicator values. Report generation involves determining its indicator values (manually or by algorithms specified when developing the report) and displaying these values in print forms.

Effective equity share: the sum of direct and indirect equity shares.

Effective interest rate: the rate used to exactly discount estimated future incoming or outgoing payments throughout the FI expected life (or a shorter period if applicable) to a net book value of a financial asset or financial liability.

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