EBA · 2014_1539 Final Q&A

Validation v1740_m

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
99
Topic
Supervisory reporting - FINREP (incl. FB&NPE)
Submitted by
Credit institution
Submitted
2014-10-13
Answered
2016-09-09
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

In FINREP template 8.1 "Breakdown of financial liabilities" (EBA/ITS/2014/05 as of 30/07/2014) hedge accounting derivatives are not included in validation v1740_m, although they qualify as financial liabilities in terms of IAS 39.

Background

The definition of derivatives (Annex V.Part 1.28, 2.107, 2.108) in template 20.6 "Geographical breakdown of liabilities by residence of the counterparty" apparently makes no difference between those derivatives reported in template 8.1 (after corrected FINREP draft in July 2014). However, validation v1740_m ({F 20.06, r010, c010, (sNNN)}) = xsum({F 08.01.a, (r010, c010, c034)}) requires the geographical breakdown only for held for trading derivatives without hedge accounting, except non-trading derivatives which do not qualify for hedge accounting. Subsequently, hedge accounting derivatives shall not be considered.

Answer

Cell {r010; c010} of template F 20.06 of Annex III of Regulation (EU) No 680/2014 - ITS on supervisory reporting includes hedging derivatives. Accordingly, validation rule v1740_m is not correct and will be deactivated and amended in a future version of the ITS on supervisory reporting.

Original source: European Banking Authority, Q&A ID 2014_1539

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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