Retained Earnings in COREP/FINREP

Question

I kindly require some clarification regarding the Retained Earnings amount which should be reported in F01.03 r190, c010. From my understanding and as per validation rule v3467_i, {F 01.03, r190 , c010}=={F 46.00, r210 , c060}, the Retained Earnings figure which should be reported in F 01.03 should not include Profit or Loss Attributable to Owners of the Parent (eligible and non-eligible profit or loss for the year) as the latter is to be reported in F 01.03 r250, c010. Conversely, Retained Earnings reported in COREP C 01.00 r130, c010, contains Previous Years Retained Earnings (r140) and Profit or Loss Attributable to Owners of the Parent (r160). In this regard, could you please confirm, or otherwise, that F 01.03 r190, c010 should not be equal to C 01.00 r130, c010? Kindly note that no guidance is provided in the EBA FINREP instructions.

European Banking Authority · Accepted Answer

The definition of retained earnings provided under Article 4(1)(123) of Regulation (EU) No 575/2013 (“CRR”) applies to both FINREP and COREP. Retained earnings as reported under row 130 of COREP template C01.00 (own funds) and on row 190 of FINREP template F01.03 (balance sheet statement – equity). These are different values based on the prudential definition for the first one and on the applicable accounting framework for the latter. The difference is that through Art. 26 (2) CRR profit or loss attributable to owners of the parent may – under certain conditions - be (partly) included in the item “retained earnings” as defined in CRR (or as year-end profit with formal approval)  – this is reflected in COREP. In FINREP it remains a separate item. See also Q&A 2013_208 .

Retained Earnings in COREP/FINREP

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