Question ID
2019_4591
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Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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
Type of submitter
Credit institution
Subject matter
Validationrule v5713_s DPM2.8 FINREP F 46.00
Question

Our question relates to EBA validationrule v5713_s which, in our view, is not always applicable. This validation rule applies to the situation where a dividend distribution is done from "Capital"; the first column. In this situation the amount of dividend should be negative in c_010, r_110 of template F46.00. However, there can also be the situation that a stock dividend is converted from Share premium to Capital. In this situation there is a negative amount reported in the second column "Share premium" and there is an equal positive amount in the column "Capital" disclosed. The total change in equity is nil, but there is a shift from Share premium to Capital. In this situation should it be possible to report a positive amount in the column "Capital". Is our understanding correct ?

Background on the question

Changes in Equity should be presented on the same row, in this case "dividend" r_110 and it is not the same as "issuance of ordinary shares"

Submission date
Final publishing date
Final answer

Stock dividends shall be recorded as an issuance of ordinary or preference shares, as needed, in row 050/060 in the FINREP template F46.00. Since the validation rule v5713_s does not apply to row 050/060, hence it is correct.
In the particular case mentioned above the movement should affect:
     • rows 050 “Issuance of ordinary shares” or 060 “Issuance of preference shares” ( as needed ), column 010 “capital” with positive value; and,
     • row 110 “Dividends”, column 20 “share premium” with negative value.

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

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