Question ID
2017_3369
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
Draft ITS on Supervisory Reporting of Institutions
Article/Paragraph
11
Type of submitter
Credit institution
Subject matter
FINREP IFRS 9, F 16.01 - Interest income and expenses by instrument and counterparty sector
Question

Under national GAAP based on BAD, do ‘impaired assets’ consist of assets subject to specific and general impairment allowances or only those subject to specific impairment allowances? What scope of ‘impaired assets’ shall be considered for row 280 (‘of which: interest-income on credit impaired financial assets’) of template F 16.01?

Background on the question

According to Annex V, Part 2, Par. 194 of EBA/ITS/2016/07, under national GAAP based on BAD row 280 ‘of which: interest-income on credit impaired financial assets’ of template F 16.01 shall include interest income on assets impaired with a specific or general impairment allowance for credit risk.

However, according to the concept to calculate the gross carrying amount, ‘impaired assets’ under national GAAP based on BAD shall only include assets adjusted for specific allowances for credit risk (but not assets adjusted for general allowances for credit risk). See Annex V, Part 1, Par. 34(c): ‘…the gross carrying amount of impaired assets shall be equal to the carrying amount before adjusting for specific allowances for credit risk. The gross carrying amount of unimpaired assets shall be the carrying amount before adjusting for general allowances for credit risk and general allowances for banking risk, where affecting the carrying amount’.

Submission date
Final publishing date
Final answer

For the purposes of reporting information in row 280 of template F 16.01 of Annexes III and IV to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) as amended by Regulation (EU) 2017/1443, ‘impaired assets’ under national GAAP based on BAD shall only include assets adjusted for specific allowances for credit risk (but not assets adjusted for general allowances for credit risk).The instructions in Annex V, Part 2, paragraph 194 of the ITS on Supervisory Reporting will be amended accordingly.

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

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