Question ID
2014_1222
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - FINREP (incl. FB&NPE)
Article
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Annexes III, IV, V
Type of submitter
Credit institution
Subject matter
FINREP template F 40.01 – Group Structure Listing - Entity by Entity
Question

Regarding the definition 124(p)“Acquisition cost” means the amount paid by the investors.”:

a)where the company has changed ownership but is still within the group, does the amount paid refer to the initial amount paid on entry into the Group or to the amount paid by the current investor.

b)where a subsidiary has not been purchased but rather has been set up by the investor does the amount paid refer to the initial share capital invested ( which can often just be a nominal amount eg: EUR3)

Background on the question

Clarification requested as "amount paid by investors" is open to interpretation as to whether it is the original or current investor entity and companies may have been set up rather than acquired.

Submission date
Final publishing date
Final answer
The ‘acquisition cost’ reported in column 170 of template F 40.01 of Annexes III and IV to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) shall refer to the initial amount paid on entry of an entity into the group. The purpose of F 40.01 is to provide the entity-by-entity breakdown of the group structure of the reporting institution, and in light of this, the key information is the acquisition cost to the group of the reporting institution at entry, rather than the amount paid by one group entity to another. If the group has sold a share of the entity to a third-party investor without losing control of the entity, the ‘acquisition cost’ shall be the proportion of the initial amount paid on entry into the group related to the remaining share in the entity. Where a subsidiary has not been purchased, but rather has been set up by the investor, the ‘acquisition cost’ as the amount paid shall refer to the initial share capital acquired that can be equal or not to the nominal amount. 
Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

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