Question ID
2017_3092
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Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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
Annex V, template F 01.03
Type of submitter
Other
Subject matter
Own Credit Spread
Question

Due to the endorsement of IFRS 9 for annual periods beginning before 1 January 2018, an entity may elect to early apply only the requirements for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss in paragraphs 5.7.1(c), 5.7.7–5.7.9, 7.2.14 and B5.7.5–B5.7.20 without applying the other requirements of IFRS 9. If an entity chooses to early apply those requirements it recognizes gains and losses on financial liabilities designated as at fair value through profit or loss in other comprehensive income instead of in P&L. Therefore, those gains and losses have to be reported in Template F 01.03. However, the taxonomy 2.5.01 for FinRep as at December 31st, 2016 does not yet include a separate row for this item. Where should gains and losses on financial liabilities designated as at fair value through profit or loss recognized in other comprehensive income be reported in template F 01.03 as at December 31st, 2016?

Background on the question

Because of the endorsement of IFRS 9 for annual periods beginning before 1 January 2018, an entity may elect to early apply only the requirements for the presentation of gains and losses on financial liabilities designated as at fair value through profit or loss in paragraphs 5.7.1(c), 5.7.7–5.7.9, 7.2.14 and B5.7.5–B5.7.20 without applying the other requirements of IFRS 9. If an entity chooses to early apply those requirements it recognizes gains and losses on financial liabilities designated as at fair value through profit or loss in other comprehensive income instead of in P&L. Therefore, those gains and losses have to be reported in Template F 01.03. The FinRep Templates adjusted for IFRS 9 include row 360 in Template F 01.03 to report gains and losses on financial liabilities designated as at fair value through profit or loss recognized in other comprehensive income. However, in the current taxonomy 2.5.01 for FinRep as at December 31st, 2016 this row was not yet included.

Submission date
Final publishing date
Final answer

When institutions choose to early-apply IFRS 9 to their regulatory reporting of financial information (FINREP) by using the option provided by paragraph 7.1.2 of IFRS 9 to present the fair value changes of financial liabilities designated at fair value through profit or loss attributable to changes in their credit risk within the Accumulated Other Comprehensive Income, they should report these changes in row 095 of template F 01.03 (for accumulated other comprehensive income) and row 030 of template F 03.00 of Annex III to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting), but not include it in any row presenting a breakdown of the (sub-)totals of row 095 of F 01.03 respectively row 030 of F 03.00.

Validation rules v1920_h in template F 01.03 and v1049_m have been turned into non-blocking rules to allow the breakdowns of row 095 in template F 01.03 and 030 in template F 03.00 to be non-exhaustive.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

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