FINREP template F 40.01 – Group Structure Listing - Entity by Entity

Question

Regarding the definition 124(p)“Acquisition cost” means the amount paid by the investors.”: a)where the company has changed ownership but is still within the group, does the amount paid refer to the initial amount paid on entry into the Group or to the amount paid by the current investor. b)where a subsidiary has not been purchased but rather has been set up by the investor does the amount paid refer to the initial share capital invested ( which can often just be a nominal amount eg: EUR3)

European Banking Authority · Accepted Answer

The ‘acquisition cost’ reported in column 170 of template F 40.01 of Annexes III and IV to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) shall refer to the initial amount paid on entry of an entity into the group. The purpose of F 40.01 is to provide the entity-by-entity breakdown of the group structure of the reporting institution, and in light of this, the key information is the acquisition cost to the group of the reporting institution at entry, rather than the amount paid by one group entity to another. If the group has sold a share of the entity to a third-party investor without losing control of the entity, the ‘acquisition cost’ shall be the proportion of the initial amount paid on entry into the group related to the remaining share in the entity. Where a subsidiary has not been purchased, but rather has been set up by the investor, the ‘acquisition cost’ as the amount paid shall refer to the initial share capital acquired that can be equal or not to the nominal amount.

FINREP template F 40.01 – Group Structure Listing - Entity by Entity

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