FINANCIAL REPORTING OF FINANCIAL INCOME AND EXPENSES

Unfunded cash from enterprises in their activities is also a source of revenue when
provided by third parties. That they are cash income from a monetary source is the
basis-we call financial income. These are income from interest on loans and bank
accounts, from dividends for equity participation, from securities transactions, from
foreign exchange transactions, commissions from banking operations. Financial income
is reported in group 72. 721 Interest income, 722 Interest income, 723 Investment
income, 724 Foreign currency income, 725 Future income, 729 Other financial income.
These accounts by structure and purpose are passive. At the end of the reporting period,
or immediately with the accounting for the lending to village 72, they are debited,
adjusting the financial result in the direction of increase.

721 Interest income on time and term deposits. Accrual of interest Dt 503/504/507 / Kt
721 Accrual of interest income on loans granted, the interest is agreed in advance,
which is accounted for throughs 496 Interest calculations Dt 496 K- p 721 Accrual of
accrued interest Dt 503/504 Rt 496 The interest is accrued even when the loan is
granted Rt 503/504-Rt 725 The accrued interest for future periods is gradually applied
to each current Dr 725 Kt 721, at the end or immediately ends with village 123 Profits
and losses Dr 721 Kt 123.

722 Income from shareholdings from dividends with shareholdings, partners,

shareholders and the deductible portion of the profits of subsidiaries. Received without
charges Dt 503/504 Rt 722. Only numbered Rt 424 Claims on complicity - Rt 722, upon
payment Dt 503/504 Rt 424, ending with 123 /, Dr. 722 No. 123.

723 Investment income Two types of financial income. 1. Revenue from the sale of
movable assets stocks, bonds, treasury securities, precious metals, etc. is the positive
difference between sales and book value. Issue gr 50 Item number 51 Movable values
reported with item 723 with a positive difference. 2. Income from long-term investment
operations a / the remainder of the revaluation reserve of long-term written off assets.
Investment Dt 112 Revaluation reserves - Item 723 b / the estimated increase in the
balance sheet assets of the SA to the amount of their previously reported decrease Dt.
22 Long-term investments and receivables - Item 723 in / income from provided for use
by others. enterprises of investment. real estate of the enterprise Dt 501/503 Sq. 723
floor Sq. 723 Sq. 123.

724 Revenue from foreign exchange operations: a / positive difference from foreign
currency receivables from customers Dt 504 Kt 411 with the currency due from the
client on its lev equivalent, 724 with gender. statement b / positive difference from
payments of liabilities in foreign currency: Dt 401 or g.15 Loans received Kt 504 with
reporting currency of used currency 724 with gender. settlement/sale of currency DR
501/503 Settlement 504 with report no. page 724 with the floor. borough D-t 724 K-t
123.

725 Financial income for future periods accrual of interest on the sold products and
goods on payment and under the terms of a financially bound lease contract,
commencement. interest on a rentable fixed asset, a positive difference between the
nominal par value and the cost of acquiring discounted government securities, etc. 1.D-t
411 Room 725 2.Night. interest in products or goods sold to the client Dt 411,
respectively. 229 Other loans extended - Suite 725 3rd night interest on financial leasing
Dt 229 Nr 20 and 725 4. Nr 516 Government Securities Nr 503 and 725 with the
position of m / d in value and par.

729 Other financial income - reported: service fees, commissions, accrued interest on
fixed assets under financial contracts. A / Fees for servicing Dt. Ct 50 Rt 729 B /
accrued interest that is reported as income for the future period Dt 229 rt 725 C /
Recognition of interest as financial income Rt 725 rt 729 Dr. 729 Dr. 123

ACCOUNTING OF FINANCIAL EXPENSES The appearance of financial expenses in

an enterprise is due to: A / credit resources that are used B / the negative results of the
movement of financial assets in the form of currency and movable values. Separate
accounts are provided for each Financial Expense Account: 621 Interest expense, 622
Risk Assets provisioning costs, 623 Investment transaction expenses, 624 Foreign
exchange expenses, 625 Future financial expenses, 629 Other financial expenses. These
accounts are operating according to structure and purpose, but are, however, used with
the nature of active accounts. They are debited in the course of the business operation
and at the end of the reporting period they are credited, the amount of which is adjusted
by the financial result of the enterprise.

621 Interest expense for interest on borrowings, interest on debt related to equity. They
can be specified. Accrual of interest: Dt 621 - Room 496 Interest expense Interest
translated: Dt 496 Kt
Accounting for the financial and extraordinary income of the enterprise.

I. Accounting for Financial Income - Financial income is the result of the business of
financial transactions. Return to the proceeds you receive from co-payments, interest in
favor of the enterprise, income from operations with financial assets and instruments,
income from foreign exchange transactions, commissions on financial transactions, and
more. Financial income accounting information is created as synthetic accounts of the
financial income groups. They may follow: accept interest, accept complicity, work to
attract financial assets and instruments, join a foreign exchange to be accepted by recent
valuations of financial assets and instruments, and to use other financial income.
Knowledge of the structure and prediction of these operating accounts; are credited
during the reporting period with the sum of the best and recognize financial income in
the enterprise; are debited at the end of the reporting period against crediting the need
for Profit and Loss for the current year, so these accounts remain off-balance, and it is
reported that these revenues have increased the entity's financial results for the current
period.

1. Interest income reporting - on loans on the subject Interest income reflects the
amounts accruing to the enterprise or receiving interest for the current period. Look like
interest in favor of the business you are debiting Understand interest rates and credit
yourself for interest income. Upon receipt of the amount of the most known interest
rates, they are separated from the cash pool and credited to the requested Interest
Estimates.

2. Participation Income Reporting - Exclusion Participation income is reported to be for

the benefit of the entity or semi-subdivisions of complicity in other trading companies.
Join dividends that are subject to an enterprise, but everything else is not received, but
debate the requirements Claims on complicity and credit the requirement Income from
complicity. Upon receiving the amount of the most common dividend, a sufficient
amount of cash is debated by the group and credited with Claims on complicity.

3. Accounting for income from operations with financial assets and instruments - higher
income than from the sale of financial assets that are sold the highest of their carrying
amount.

4. Accounting for foreign exchange earnings - foreign exchange earnings and foreign
currency assets and liabilities at the date of use of an entity's financial statements are
offset by a positive examination of the results resulting from the publication of
exchange rates when checking foreign currency transactions and when reviewing
foreign currency assets and liabilities. Revenue from foreign exchange operations may
occur upon receipt of amounts on foreign exchange decisions from foreign clients and
upon payment of amounts for the repayment of foreign exchange communications.
When receiving currency sums, it is necessary to compare the BGN equilibrium at the
opening of foreign exchange rates, determined at the BNB central rate for the day and
the BGN equilibrium of the action at its reporting rate. The opening of the course is the
one assuming that it started initially, and if it is judged, the exchange rate of the next
assessment. The positive exchange rate practice of each exchange rate that the currency
received is estimated to be higher than the reporting rate of the issue.
When paying for action in foreign currency, its lev parity at the exchange rate is
compared with the lev equilibrium of the exposure for that purpose, the currency
determined at the BNB central rate for the planning day. Positive exchange rate practice
at each exchange rate that is judged to be currency and lower than the exchange rate
statement.
When assessing cash and for currency translation, the positive exchange rate is taken
into account if it is locked if the BNB exchange rate, which is higher than their
reporting rate, is locked (leading to an increase in their lev equivalent).
In the case of a revaluation of the power in foreign currency, the positive exchange rate
situation is lower than the exchange rate at the closing of the exchange rate, which is
used with a decrease in their lev equality.

5. Report income from recent valuations of financial assets and instruments - review
financial assets to record debits on accounts of differing assets (short-term financial
assets group; best financial assets group, etc.) and loans under the questions. recent
valuations of financial assets and instruments.

6. Accounting for other financial income - miscellaneous other financial income is

accounted for by current income from financial operations that have failed to report
their profit from financial operations (eg fees and commissions received on financial
operations).

II. Reporting extraordinary passages - extraordinary income left unaddressed as a result

of lack of affection.