Question ID
2017_3618
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Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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 43.00 / F 20.05
Type of submitter
Credit institution
Subject matter
IFRS 9, validation rule v1386_m
Question

Validation v1386_m for IFRS 9 (taxonomy 2.7) seems to be incorrect.

{F 43.00, r070, c050} + {F 43.00, r070, c055} = xsum({F 20.05.b, c030, (r010-030, sNNN)})

Template 43 shall include reconciliation between the carrying amount of the item ‘Provisions’ at the beginning and end of the period by the nature of the movements, except provisions measured under IFRS 9 that shall instead be reported in template 12. In template 20.5, ‘Provisions for commitments and guarantees given’ shall include provisions measured under IAS 37, the credit losses of financial guarantees treated as insurance contracts under IFRS 4, and the provisions on loan commitments and financial guarantees under the impairment requirements of IFRS 9 and provisions for commitments and guarantees under national GAAP based on BAD in accordance with paragraphs 11 of this Part. Therefore template 20.5 can have a higher amount as template 43 and the validation rule can't be fulfilled.

Background on the question

Template 43 shall include reconciliation between the carrying amount of the item ‘Provisions’ at the beginning and end of the period by the nature of the movements, except provisions measured under IFRS 9 that shall instead be reported in template 12. In template 20.5, ‘Provisions for commitments and guarantees given’ shall include provisions measured under IAS 37, the credit losses of financial guarantees treated as insurance contracts under IFRS 4, and the provisions on loan commitments and financial guarantees under the impairment requirements of IFRS 9 and provisions for commitments and guarantees under national GAAP based on BAD in accordance with paragraphs 11 of this Part. Therefore template 20.5 can have a higher amount as template 43.

Submission date
Final publishing date
Final answer

Annex V to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) establishes that column 030 of template F 20.05 of Annexes III and IV to the ITS on Supervisory Reporting includes, among others,  the provisions on loan commitments and financial guarantees under impairment requirements of IFRS 9 (see paragraph 276 of Part 2) while template F 43.00 of Annexes III and IV does not include provisions measured under IFRS 9 The latter are available under template F 12.01 r570, c100 as per paragraph 157 of annex 5 to the ITS.

In this respect, validation rule v1386_m is not correct and has been deactivated on 10/09/2018.

 

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

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