English to Russian Bus/Financial Finance (general)

At 31 December 2020, the Company reviewed the accounting treatment of coupons paid to investors relating to RT1 (Restricted Tier 1) subordinated financial instruments issued by Assurances Company and subscribed by investors outside the Group.

Since the compensation of these instruments is classified as “cumulative”, it is vested in the holders of those instruments, who are thus allocated a portion of the income.

This has the following consequences:

coupons are allocated to non-controlling interests in the income statement by deducting them from the Group share of income;

at the time of their payment, coupons are deducted from equity relating to non-controlling interests.