Management and marketing

Income/expenses are recognized in accordance with the procedure.
They are established by Articles 271, 272 of the Tax Code of the Russian Federation and are accepted for taxation purposes in the reporting (tax) period in which they took place, regardless of the actual receipt of funds, other property (works/services) and/or property rights.
The amount of expenses recorded for tax purposes and carried out in the reporting period is fully attributed to reduction of income, since the specifics of the process of providing banking services
does not provide for the formation of work-in-progress balances and the procedure for reducing income by direct and indirect amounts is the same.
The taxable base for income tax is calculated in accordance with the Tax Code of the Russian Federation.

Table 5 – Calculation of income tax paid by Premium NGO (LLC)

for the period 2016-2018, in thousands of rubles.

Name of tax accounting items	For 2018 y	For 2017 y	For 2016 y
Income tax
Current income tax
Current income tax (balance sheet account N 70611, when compiling the annual accounting (financial) reporting – balance sheet account N70711)	7 445	570	0
Deferred income tax:

Increase in income tax on deferred income tax (balance sheet account N 70616, when preparing annual accounting (financial) statements – balance sheet account N 70716)	0	0	49
Reduction of income tax on deferred income tax (balance sheet account N 70615, when preparing annual accounting (financial) statements – balance sheet account N 70715)	1 192	53	0
Total income tax expense	6 253	517	49
Total income tax expense	0	0	0

Deferred tax liabilities and deferred tax assets

The accounting records reflect the amounts that can affect the increase or decrease in the amount of income tax payable
to the budget system of the Russian Federation in future reporting periods.
Deferred tax liabilities and deferred tax assets determined at the end of the first quarter, six months and nine months are recorded in accounting no later than 45 calendar days from the end of the corresponding reporting period.
Deferred tax liabilities and deferred tax assets determined at the end of the calendar year are reflected in accounting during the period of reflection of events after the reporting date, i.e. in the period before the date of preparation of the annual accounting (financial) statements.
Deferred tax liabilities and deferred tax assets are calculated by the NBCO at the end of each reporting period based on the statement of calculation of deferred tax liabilities and deferred tax assets.
The authorized capital of the Premium NGO (LLC) is formed in the amount of 18,000,000 (Eighteen million) rubles and paid in full by the founder and the sole Participant of the company.
In the summer of 2019, the authorized capital will be capitalized at the expense of the sole participant, due to the changed requirements of the Central Bank
The Russian Federation to non–governmental organizations licensees of electronic money.
The size of the reserve fund is at least 5% of the size actually paid-up authorized capital. The Fund is formed by mandatory annual contributions. The amount of annual deductions may not be less than 5% of net profit.
Currently, compliance with standards or "compliance" is a line of professional activity introduced into Russian organizations by large Western companies. The direction exists mainly in the financial and banking sector, although it is not limited to them.
Departments that implement the function of checking for compliance, as a rule, are called "Compliance" or "Compliance control". In 2014 , the Bank
The Bank of Russia has adopted amendments to Regulation 242-P, according to which an internal control service is introduced in all banks, which essentially performs the functions of compliance control (compliance risk management or in the terminology 242-P - regulatory risks). (Appendix B. Assessment of the compliance system of the NGO "Premium" (LLC)).
The concept of compliance risk in relation to the banking sector in
Russian legislation is defined in the Regulation of the Bank of Russia 242-P. Compliance risk refers to the risk of losses incurred by a credit institution due to non-compliance with the legislation of the Russian Federation.
Of the Russian Federation, internal documents of the credit institution, standards of self-regulatory organizations, as well as as a result of the application of sanctions or other measures of influence by supervisory authorities.
This risk is also called regulatory risk. 68 To verify and confirm the reliability of the annual financial statements, the NCO annually engages a professional audit organization (auditor) that is not related by property interests to the NCO, members of the Board of Directors, Chairman of the Management Board, members of the Management Board and participants of the NCO (external audit). The auditor conducts an audit and gives an opinion, which is submitted to the Bank of Russia in accordance with the established procedure.
The NCO "Premium" (LLC) has formed a system of internal control bodies. Internal control is carried out in order to ensure:

• 
  The efficiency and effectiveness of financial and economic
  

activities in banking transactions and other transactions, the effectiveness of asset and liability management, including ensuring
the safety of assets, bank risk management.

• 
  Reliability, completeness, objectivity and timeliness of preparation and presentation of financial, accounting, statistical and other reports (for external and internal users), as well
  

as information security (protection of interests (goals) NGOs in
the information sphere, which is a set of information, information infrastructure, entities engaged in the collection, formation, dissemination and use of information, as well as a system for regulating the relations arising in this case).
Compliance with regulatory legal acts, standards of self-regulating organizations (for professional participants of the securities market), constituent and internal documents of NPOs.

• 
  Exclusion of involvement of NGOs and participation of its employees in illegal activities, including legalization (laundering) of proceeds from crime and financing of terrorism,
  

as well as timely submission of information to state authorities and the Bank of Russia in accordance with the current legislation of the Russian Federation. The system of internal control bodies of NPOs is formed by:

• 
  NGO management bodies:
  
• 
  General Meeting of NGO participants;
  
• 
  Board of Directors of NPOs;
  
• 
  Chairman of the Management Board and the Management Board of the NGO;
  
• 
  Chief Accountant of an NGO;
  
• 
  Internal Audit Service;
  
• 
  Internal Control Service;
  
• 
  Service for Countering the Legalization (Laundering) of Proceeds from
  

Crime and the Financing of Terrorism.
Heads and employees of structural divisions of NGOs appointed and dismissed from their posts by orders The Chairman of the Board of the NGO, within the limits of the powers established by him.
The Internal Audit Service operates on the basis of the Charter and
Regulations "On the Internal Audit Service of the Premium Non-Bank Credit Organization (Limited Liability Company), approved by the Board of Directors of the NCO. The head of the internal audit service is approved by the Board of Directors of the NCO and must comply
with the requirements established by the Instruction of the Bank of Russia No. 3223-U and the requirements for business reputation established by paragraph 1 of Part one of Article 16 of the Federal Law "On Banks and Banking Activities".
Rules for the transfer of electronic funds
Non-bank credit organization "Premium" (Limited Liability Company), approved by Protocol No. 4 of March 05, 2013. established in accordance with the provisions and rules of the Federal Law "On the National Payment System" dated 27.06.2011 No. 161-FZ, the Law "On Banks and Banking Activities" dated 02.12.1990. No. 395-1, Federal

Law No. 70 "On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism" dated 07.08.2001 No. 115-FZ, The Regulations of the Bank of Russia "On the Rules for the Transfer of Funds" dated 06/19/2012 No. 383-P, other regulations and recommendations of the Bank of Russia and determine the order of activity Non-bank credit organization "Premium" (Limited

Liability Company) (NGO "Premium" (LLC)) related to the transfer
of electronic funds; the procedure for providing electronic means of payment to customers and making electronic money transfers using them; the procedure for the operation of an electronic money operator when involving bank payment agents, organizations providing operational services and (or) payment clearing services;
the procedure for ensuring the continuity of
the electronic money transfer; the procedure for reviewing claims
by the electronic money operator, including procedures for operational interaction with customers; the procedure for exchanging information when making electronic money transfers.
Acceptance and execution of the Client's Order when performing
operations using EDS is confirmed by the NCO by sending to the Client, in accordance with the procedure established by the contract, a notice in electronic form or on paper confirming the operation using the ESP, in which the following must be specified:

• 
  the name or other details of the NCO;
  
• 
  number, code and (or) other ESP identifier;
  
• 
  type of operation;
  
• 
  date of operation;
  
• 
  transaction amount;
  
• 
  the amount of the commission fee in case of its collection;
  

the identifier of the device when it is used to perform an operation using an electronic means of payment.
An NGO is obliged to keep records of information on balances on an ongoing basis EMF and implemented EMF transfers.
In addition to making the transfer of the EMF, the remainder (part of the remainder) EDS Client – an individual using an Unpersonalized ESP, it can be transferred by his order only to a bank account. Such
a remainder (part of the remainder) The EDS of an individual Client cannot be issued in cash. If an individual uses
Personalized ESP, the balance (part of the balance) can be transferred to a bank account by his order, transferred without opening a bank account, or issued in cash at the office of an NGO
or through Bank payment Agents of an NGO.
The EDS of a Client – a legal entity or an individual entrepreneur can be credited or transferred only to his bank account opened in another credit institution by his order.
The provision and use of electronic means of payment (ESP)
is carried out on the basis of an agreement on the use of ES concluded
between an NGO and a Client, as well as agreements concluded between an NGO and other money transfer operators.
In the case of concluding a contract with an individual Client without
going through the identification procedure, such a client is provided
with a non–personalized ESP. Non–personalized ESP is provided
only to the Client - an individual.
In the case of concluding a contract with an identified individual client, the NCO provides such a Client with a personalized ESP.
Access to the ESP and performing any operations using them
is possible only after client authentication. Authentication
of clients when accessing the ESP is carried out by the NCO software
using the client's authorization data.
The NGO provides clients with the opportunity to access ESP, as well as the possibility of making an electronic money transfer exclusively using the client's authorization data.
The authorization data of an individual client may be different, but by default authorization is carried out using the login and passwords of the individual client.
The client – an individual has the right to use other authorization methods established by the agreement of the NGO and the client.
The client's authorization data (login and passwords) are created by the client independently. Passwords can be changed at any time and an unlimited number of times.
In case of non-identification of an individual client by an NGO
in accordance with the Law "On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism" , the Client uses an Unpersonalized ESP , provided that the balance of electronic funds at any time does not exceed thousand rubles, and the total amount of transferred EMF using one Non-personalized electronic means of payment may not exceed thousand rubles during a calendar month.In case of identification of the client – an individual