Country of transaction, scope of disclosures and intragroup transactions

Recital 52 of Directive 2013.36/EU sets out the principle that increased transparency regarding the activities of institutions should be seen as an important element of the corporate responsibility of institutions towards stakeholders and society. In accordance with this principle and Article 89, institutions are required to disclose information on a consolidated basis 13 as set out in Q&A 1248  - this is the prudential scope of consolidation, or where so prescribed by the Member State, a more extensive scope of consolidation, i.e. the accounting scope. Against that background, it can be considered best practice to disclose country by country reporting before adjustments for intra-group cross-border transactions and other consolidated adjustments, accompanied by appropriate information to explain their impact. To the extent that associates and joint ventures are included in the scope of consolidation (be it the regulatory scope of consolidation or a more extensive scope required by Member States), related information should be included in the disclosure of country-by-country reporting.