Treatment of Financial offsetting of assets and liabilities subject to offsetting, enforceable master netting arrangements and similar arrangements'

Finrep instructions (point 1.3, page 1) provide that “The data points identified in the templates shall be drawn up in accordance with the recognition, offsetting and valuation rules of the relevant accounting framework, as defined in Article 4(1)(77) of the CRR”. Instructions for the asset encumbrance templates also confirm under point 1.2 (3) that “Institutions shall report carrying amounts under the accounting framework they use for the reporting of financial information in accordance with Articles 9 to 11. Institutions that are not required to report financial information shall use their respective accounting framework”. Considering that templates F.32.01 to F32.04 have been designed with reference to other Finrep templates, and that both set of templates share cross-template validation rules, offsetting rules that are recognised by the applicable accounting framework should also apply for the reporting of repos and reverse repos in the template F.32.04.