Statement of profit or loss

In general, as stated by paragraph 21 of part 2 of annex V Regulation (EU) No 680/2014 13 ITS on Supervisory Reporting of institutions (ITS), interest income and expenses from financial instruments held for trading can be classified separately as interest income and expenses ("clean price") or as part of the gains and losses from these assets (namely, fair value changes), a practice known as "dirty price". The word "shall" in the paragraph means that these are the only two accepted possibilities for the reporting of these amounts. Paragraph 24 of part 2 of annex V of the ITS on Supervisory reporting covers those derivatives which are classified as held for trading, which are economic hedges (see paragraphs 73 and 74 of part 2 of annex V of the ITS on Supervisory reporting) but which are not hedges from an accounting point of view; that is to say, they do not comply with the definition of hedge accounting in IAS 39. In this specific case, there is a possibility to report the amounts separately as interest income: financial assets held for trading (row 020) or interest expense: financial liabilities held for trading (row 100).