Cash and cash equivalents are assets that can be converted into cash within one day and include cash, balances on correspondent accounts with the Bank of Russia. Balances on correspondent accounts in other banks are shown as part of funds in other banks. Mandatory reserves in the Central Bank of the Russian Federation Mandatory reserves of NPOs are funds deposited with the Bank of Russia and not intended to finance the daily operations of NPOs. Mandatory reserves on accounts with the Bank of Russia are not included in cash and cash equivalents for the purposes of preparing a cash flow statement. Funds in credit institutions For the convenience of settlements and to increase the efficiency of payments, NCO Premium (LLC) has opened correspondent accounts with other credit institutions. Relations with credit institutions are regulated by legislation and agreements on correspondent relations concluded between the parties . The formation of reserves for possible losses on funds in credit institutions is carried out depending on the financial condition of counterparty Banks and is adjusted when the classification features of the risk level change. Due to the fact that the banking business is associated with the risk of losses from the implementation of various adverse factors, the NCO forms reserves for possible losses in accordance with the requirements of the Regulations of the Bank of Russia No. 611-P and the Regulations of the Bank of Russia No. 590-P (except loans and debt equated to loan). Risk assessment and classification of elements of the settlement base of the reserve is carried out both on an individual basis and collectively in the context of portfolios of homogeneous claims, if the elements of the settlement base meet the established criteria for inclusion in a certain portfolio of homogeneous claims. The size of the reserve is determined by one of the five categories of quality and the reserve standard, within the range established for it, according to the Regulations of the Bank of Russia No. 611-P and 590-P. As of 01.01.2019, NPO Premium (LLC) has created reserves both for elements of the settlement base, assessed on an individual basis, and for portfolios of homogeneous requirements. Elements of the settlement base included balances on NOSTRO accounts, incomplete settlements with service operators 61 payment infrastructure and money transfer operators, other requirements, settlements with suppliers, contractors and buyers.
