Interpretation of Article 24 of the CRR regarding own funds requirement at solo level

Article 24(2) of Regulation (EU) No 575/2013 (CRR) stipulates that competent authorities may require that, for regulatory purposes, institutions value assets and off-balance sheet items and determine own funds in accordance with the international accounting standards as applicable under Regulation (EC) No 1606/2002. If the competent authority requires the use of IFRS according to Article 24(2), institutions shall value assets and off-balance sheet items and determine own funds in accordance with IFRS notwithstanding any national laws requiring the use of other accounting standards for the valuation of assets and off-balance sheet items and the determination of own funds. This regulatory option for the competent authority is without prejudice to the national laws on annual accounts for financial reporting purposes.  It should be noted that competent authorities shall grant a transition period of 24 months to institutions which have to apply IFRS for the first time as set out in Article 466 of the CRR.   DISCLAIMER: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Internal Market and Services) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.