Commission Implementing Regulation (EU) 2021/451 of 17 December 2020 laying down implementing technical standards for the application of Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to supervisory reporting of institutions and repealing Implementing Regulation (EU) No 680/2014 (Text with EEA relevance)

		*References National GAAP compatible IFRS Annex V.Part 2.302*	Carrying amount
		*References National GAAP compatible IFRS Annex V.Part 2.302*	Carrying amount	of which: right-of-use assets
		*References National GAAP compatible IFRS Annex V.Part 2.302*	Carrying amount	IFRS 16.47(a), 53(j), Annex V.Part 2.303i
		*References National GAAP compatible IFRS Annex V.Part 2.302*	0010	0020
0010	Property plant and equipment	IAS 16.6; IAS 16.29; IAS 1.54(a)
0015	Of which: Software assets	IAS 38.4; Annex V.Part 2.303
0020	Revaluation model	IAS 16.31, 73(a),(d)
0030	Cost model	IAS 16.30, 73(a),(d)
0040	Investment property	IAS 40.5, 30; IAS 1.54(b)
0050	Fair value model	IAS 40.33-55, 76
0060	Cost model	IAS 40.56, 79(c)
0070	Other intangible assets	IAS 38.8, 118, 122 ; Annex V.Part 2.303
0075	Of which: Software assets	IAS 38.9; Annex V.Part 2.303
0080	Revaluation model	IAS 38.75-87, 124(a)(ii)
0090	Cost model	IAS 38.74

43. Provisions

		References National GAAP based on BAD	References National GAAP compatible IFRS	*Carrying amount Annex V.Part 1.27-28*	*Carrying amount Annex V.Part 1.27-28*	*Carrying amount Annex V.Part 1.27-28*	*Carrying amount Annex V.Part 1.27-28*	*Carrying amount Annex V.Part 1.27-28*	*Carrying amount Annex V.Part 1.27-28*	*Carrying amount Annex V.Part 1.27-28*
		References National GAAP based on BAD	References National GAAP compatible IFRS	Pensions and other post employment defined benefit obligations	Other long term employee benefits	Restructuring	Pending legal issues and tax litigation	Commitments and guarantees given under national GAAP	Other commitments and guarantees given measured under IAS 37 and guarantees given measured under IFRS 4	Other provisions
		References National GAAP based on BAD	References National GAAP compatible IFRS	IAS 19.63; IAS 1.78(d); Annex V.Part 2.9	IAS 19.153; IAS 1.78(d); Annex V.Part 2.10	IAS 37.70-83, 84 (a)	IAS 37.14, 84 (a)		IAS 37; IFRS 4; Annex V. Part 2.304-305	IAS 37.14
		References National GAAP based on BAD	References National GAAP compatible IFRS	Annex V.Part 2.9	Annex V.Part 2.10			BAD art 24-25, 33(1)
		References National GAAP based on BAD	References National GAAP compatible IFRS	0010	0020	0030	0040	0050	0055	0060
0010	Opening balance [carrying amount at the beginning of the period]		IAS 37.84 (a)
0020	Additions, including increases in existing provisions		IAS 37.84 (b)
0030	(-)  Amounts used		IAS 37.84 (c)
0040	(-)  Unused amounts reversed during the period		IAS 37.84 (d)
0050	Increase in the discounted amount [passage of time] and effect of any change in the discount rate		IAS 37.84 (e)
0060	Other movements
0070	Closing balance [carrying amount at the end of the period]		IAS 37.84 (a)

44 Defined benefit plans and employee benefits

44.1   Components of net defined benefit plan assets and liabilities

		References National GAAP compatible IFRS	Amount
		References National GAAP compatible IFRS	Annex V.Part 2.306-307
		References National GAAP compatible IFRS	0010
0010	Fair value of defined benefit plan assets	IAS 19.140(a)(i), 142
0020	Of which: Financial instruments issued by the institution	IAS 19.143
0030	Equity instruments	IAS 19.142(b)
0040	Debt instruments	IAS 19.142(c)
0050	Real estate	IAS 19.142(d)
0060	Other defined benefit plan assets
0070	Present value of defined benefit obligations	IAS 19.140(a)(ii)
0080	Effect of the asset ceiling	IAS 19.140(a)(iii)
0090	Net defined benefit assets [Carrying amount]	IAS 19.63; Annex V.Part 2.308
0100	Provisions for pensions and other post-employment defined benefit obligations [Carrying amount]	IAS 19.63, IAS 1.78(d); Annex V.Part 2.9
0110	Fair value of any right to reimbursement recognised as an asset	IAS 19.140(b)

44.2   Movements in defined benefit obligations

		References National GAAP compatible IFRS	Defined benefit obligations
		References National GAAP compatible IFRS	Annex V.Part 2.306, 309
		References National GAAP compatible IFRS	0010
0010	Opening balance [present value]	IAS 19.140(a)(ii)
0020	Current service cost	IAS 19.141(a)
0030	Interest cost	IAS 19.141(b)
0040	Contributions paid	IAS 19.141(f)
0050	Actuarial (-) gains or losses from changes in demographic assumptions	IAS 19.141(c)(ii)
0060	Actuarial (-) gains or losses from changes in financial assumptions	IAS 19.141(c)(iii)
0070	Foreign currency exchange increase or (-) decrease	IAS 19.141(e)
0080	Benefits paid	IAS 19.141(g)
0090	Past service cost, including gains and losses arising from settlements	IAS 19.141(d)
0100	Increase or (-) decrease through business combinations and disposals	IAS 19.141(h)
0110	Other increases or (-) decreases
0120	Closing balance [present value]	IAS 19.140(a)(ii); Annex V.Part 2.310

44.3   Staff expenses by type of benefits

		References National GAAP based on BAD	References National GAAP compatible IFRS	Current period
		References National GAAP based on BAD	References National GAAP compatible IFRS	0010
0010	Pension and similar expenses	Annex V.Part 2.311(a)	Annex V.Part 2.311(a)
0020	Share based payments	Annex V.Part 2.311(b)	IFRS 2.44; Annex V.Part 2.311(b)
0030	Wages and salaries	Annex V.Part 2.311(c)	Annex V.Part 2.311(c)
0040	Social security contributions	Annex V.Part 2.311(d)	Annex V.Part 2.311(d)
0050	Severance payments	Annex V.Part 2.311(e)	IAS 19.8, Annex V.Part 2.311(e)
0060	Other types of staff expenses	Annex V.Part 2.311(f)	Annex V.Part 2.311(f)
0070	STAFF EXPENSES

44.4   Staff expenses by category of remuneration and category of staff

		References National GAAP based on BAD	References National GAAP compatible IFRS	Current period	Current period	Current period	Current period
		References National GAAP based on BAD	References National GAAP compatible IFRS	Total staff
		References National GAAP based on BAD	References National GAAP compatible IFRS		of which: Identified staff
		References National GAAP based on BAD	References National GAAP compatible IFRS		of which: Identified staff	of which: Management body (in its management function) and senior management	of which: Management body (in its supervisory function)
		References National GAAP based on BAD	References National GAAP compatible IFRS		Annex V.Part 2.311i (a)	Annex V.Part 2.311i	Annex V.Part 2.311i (b)
		References National GAAP based on BAD	References National GAAP compatible IFRS	0010	0020	0030	0040
0010	Fixed remuneration	Annex V.Part 2.311i (a)	Annex V.Part 2.311i (a)
0020	Variable remuneration	Annex V.Part 2.311i (a)	Annex V.Part 2.311i (a)
0030	Staff expenses other than remuneration
0040	STAFF EXPENSES
0050	NUMBER OF STAFF	Annex V.Part 2.311ii	Annex V.Part 2.311ii

45 Breakdown of selected items of statement of profit or loss

45.1   Gains or losses on financial assets and liabilities designated at fair value through profit or loss by accounting portfolio

		References National GAAP based on BAD	References National GAAP compatible IFRS	Current period	Changes in fair value due to credit risk
		References National GAAP based on BAD	References National GAAP compatible IFRS		Annex V.Part 2.312
		References National GAAP based on BAD	References National GAAP compatible IFRS	0010	0020
0010	Financial assets designated at fair value through profit or loss		IFRS 7.20(a)(i); IFRS 9.4.1.5
0020	Financial liabilities designated at fair value through profit or loss		IFRS 7.20(a)(i); IFRS 9.4.2.2
0030	GAINS OR (-) LOSSES ON FINANCIAL ASSETS AND LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS	BAD art 27.Vertical layout(6)	IFRS 7.20(a)(i)

45.2   Gains or losses on derecognition of non-financial assets

		References National GAAP based on BAD	References National GAAP compatible IFRS	Current period
		References National GAAP based on BAD	References National GAAP compatible IFRS	Annex V.Part 2.313
		References National GAAP based on BAD	References National GAAP compatible IFRS	0010
0010	Property, Plant and Equipment		IAS 16.68, 71
0020	Investment property		IAS 40.69; IAS 1.34(a), 98(d)
0030	Intangible assets		IAS 38.113-115A; IAS 1.34(a)
0040	Other assets		IAS 1.34 (a)
0050	GAINS OR (-) LOSSES ON DERECOGNITION OF NON-FINANCIAL ASSETS		IAS 1.34

45.3   Other operating income and expenses

		References National GAAP based on BAD	References National GAAP compatible IFRS	Income	Expenses
		References National GAAP based on BAD	References National GAAP compatible IFRS	0010	0020
0010	Changes in fair value in tangible assets measured using the fair value model	Annex V.Part 2.314	IAS 40.76(d); Annex V.Part 2.314
0020	Investment property	Annex V.Part 2.314	IAS 40.75(f); Annex V.Part 2.314
0030	Operating Leases other than investment property	Annex V.Part 2.315	IFRS 16.81,82; Annex V.Part 2.315
0040	Other	Annex V.Part 2.316	Annex V.Part 2.316
0050	OTHER OPERATING INCOME OR EXPENSES	Annex V.Part 2.314-316	Annex V.Part 2.314-316

46. Statement of changes in equity

	Sources of equity changes	References National GAAP based on BAD	References National GAAP compatible IFRS	Capital	Share premium	Equity instruments issued other than Capital	Other equity	Accumulated other comprehensive income	Retained earnings	Revaluation reserves	Fair value reserves	Other reserves	First consolidation differences	(-) Treasury shares	Profit or (-) loss atributable to owners of the parent	(-) Interim dividends	Minority interests	Minority interests	Total
	Sources of equity changes	References National GAAP based on BAD	References National GAAP compatible IFRS	Capital	Share premium	Equity instruments issued other than Capital	Other equity	Accumulated other comprehensive income	Retained earnings	Revaluation reserves	Fair value reserves	Other reserves	First consolidation differences	(-) Treasury shares	Profit or (-) loss atributable to owners of the parent	(-) Interim dividends	Accumulated Other Comprehensive Income	Other items	Total
	Sources of equity changes	References National GAAP based on BAD	References National GAAP compatible IFRS	IAS 1.106, 54(r)	IAS 1.106, 78(e)	IAS 1.106, Annex V.Part 2.18-19	IAS 1.106; Annex V.Part 2.20	IAS 1.106	CRR art 4(1)(123)	IFRS 1.30 D5-D8		IAS 1.106, 54(c)		IAS 1.106; IAS 32.34, 33; Annex V.Part 2.30	IAS 1.106(a)	IAS 1.106; IAS 32.35	IAS 1.54(q), 106(a)	IAS 1.54(q), 106(a)	IAS 1.9(c), IG6
	Sources of equity changes	References National GAAP based on BAD	References National GAAP compatible IFRS	BAD art 4.Liabilities(9), BAD art 22	BAD art 4.Liabilities(10); CRR art 4(124)	Annex V.Part 2.18-19	Annex V.Part 2.20	Accounting Directive art 8(1)(a), (6)	BAD art 4 Liabilities (13); CRR art 4(123)		BAD art 4.Liabilities(12)		Accounting Directive 24(3)(c)	Accounting Directive Annex III Annex III Assets D(III)(2); BAD art 4 Assets (12); Annex V.Part 2.30	BAD art 4.Liabilities(14)	CRR Article 26(2b)	Accounting Directive art 24(4)	Accounting Directive art 24(4)
	Sources of equity changes	References National GAAP based on BAD	References National GAAP compatible IFRS	0010	0020	0030	0040	0050	0060	0070	0075	0080	0085	0090	0100	0110	0120	0130	0140
0010	Opening balance [before restatement]
0020	Effects of corrections of errors		IAS 1.106.(b); IAS 8.42
0030	Effects of changes in accounting policies		IAS 1.106.(b); IAS 1.IG6; IAS 8.22
0040	Opening balance [current period]
0050	Issuance of ordinary shares		IAS 1.106.(d).(iii)
0060	Issuance of preference shares		IAS 1.106.(d).(iii)
0070	Issuance of other equity instruments		IAS 1.106.(d).(iii)
0080	Exercise or expiration of other equity instruments issued		IAS 1.106.(d).(iii)
0090	Conversion of debt to equity		IAS 1.106.(d).(iii)
0100	Capital reduction		IAS 1.106.(d).(iii)
0110	Dividends		IAS 1.106.(d).(iii); IAS 32.35; IAS 1.IG6
0120	Purchase of treasury shares		IAS 1.106.(d).(iii); IAS 32.33
0130	Sale or cancellation of treasury shares		IAS 1.106.(d).(iii); IAS 32.33
0140	Reclassification of financial instruments from equity to liability		IAS 1.106.(d).(iii)
0150	Reclassification of financial instruments from liability to equity		IAS 1.106.(d).(iii)
0160	Transfers among components of equity		IAS 1.106.(d).(iii); Annex V.Part 2.318
0170	Equity increase or (-) decrease resulting from business combinations		IAS 1.106.(d).(iii)
0180	Share based payments		IAS 1.106.(d).(iii); IFRS 2.10
0190	Other increase or (-) decrease in equity		IAS 1.106.(d)
0200	Total comprehensive income for the year		IAS 1.106.(d).(i)-(ii); IAS 1.81A.(c); IAS 1.IG6
0210	Closing balance [current period]

47. Loans and advances: Average duration and recovery periods

		References	TOTAL	TOTAL	TOTAL	TOTAL	TOTAL	TOTAL	TOTAL
		References		of which: Households	of which: Households	of which: Non-financial corporations	of which: Non-financial corporations	of which: Non-financial corporations	of which: Non-financial corporations
		References			of which: loans collateralised by residential immovable property		of which: SMEs	of which: SMEs	Of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
		References			of which: loans collateralised by residential immovable property			of which: Commercial Real Estate (CRE) loans	Of which: Commercial Real Estate (CRE) loans to NFCs other than SMEs
		References		Annex V.Part 1.42(f)	Annex V.Part 2.86(a), 87	Annex V.Part 1.42(e)	SME Art 1 2(a)	SME Art 1 2(a), Annex V.Part 2.239ix	Annex V.Part 2.239ix
		References	0010	0020	0030	0040	0050	0060	0070
0010	Non-performing loans and advances: weighted average time since past due date (in years)	Annex V.Part 2.362, 363
0020	Net cumulated recoveries from litigation procedures concluded during the period	Annex V.Part 2.362, 364(a)
0030	Gross carrying amount reduction from litigation procedures concluded during the period	Annex V.Part 2.362, 364(b)
0040	Average duration of litigation procedures concluded in the period (in years)	Annex V.Part 2.362, 364(c)

ANNEX V

INSTRUCTIONS FOR REPORTING ON FINANCIAL INFORMATION

Table of contents	Table of contents
	GENERAL INSTRUCTIONS
1.	References
2.	Conventions
3.	Consolidation
4.	Accounting portfolios of financial instruments
4.1.	Financial assets
4.2.	Financial liabilities
5.	Financial instruments
5.1.	Financial assets
5.2.	Gross carrying amount
5.3.	Financial liabilities
6.	Counterparty breakdown
	TEMPLATE RELATED INSTRUCTIONS
1.	Balance sheet
1.1.	Assets (1.1)
1.2.	Liabilities (1.2)
1.3.	Equity (1.3)
2.	Statement of profit or loss (2)
3.	Statement of comprehensive income (3)
4.	Breakdown of financial assets by instrument and by counterparty sector (4)
5.	Breakdown of non-trading loans and advances by product (5)
6.	Breakdown of non-trading loans and advances to non-financial corporations by NACE codes (6)
7.	Financial assets subject to impairment that are past due (7)
8.	Breakdown of financial liabilities (8)
9.	Loan commitments, financial guarantees and other commitments (9)
10.	Derivatives and hedge accounting (10 and 11)
10.1.	Classification of derivatives by type of risk
10.2.	Amounts to be reported for derivatives
10.3.	Derivatives classified as ‘economic hedges’
10.4.	Breakdown of derivatives by counterparty sector
10.5.	Hedge accounting under national GAAP (11.2)
10.6.	Amount to be reported for non-derivative hedging instruments (11.3 and 11.3.1)
10.7.	Hedged items in fair value hedges (11.4)
11.	Movements in allowances and provisions for credit losses (12)
11.1.	Movements in allowances for credit losses and impairment of equity instruments under national GAAP based on BAD (12.0)
11.2.	Movements in allowances and provisions for credit losses under IFRS (12.1)
11.3.	Transfers between impairment stages (gross basis presentation) (12.2)
12.	Collateral and guarantees received (13)
12.1.	Breakdown of collateral and guarantees by loans and advances other than held for trading (13.1)
12.2.	Collateral obtained by taking possession during the period (held at the reference date) (13.2.1)
12.3.	Collateral obtained by taking possession accumulated (13.3.1)
13.	Fair value hierarchy: Financial instruments at fair value (14)
14.	Derecognition and financial liabilities associated with transferred financial assets (15)
15.	Breakdown of selected statement of profit or loss items (16)
15.1.	Interest income and expenses by instrument and counterparty sector (16.1)
15.2.	Gains or losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss by instrument (16.2)
15.3.	Gains or losses on financial assets and liabilities held for trading and trading financial assets and trading financial liabilities by instrument (16.3)
15.4.	Gains or losses on financial assets and liabilities held for trading and trading financial assets and trading financial liabilities by risk (16.4)
15.5.	Gains or losses on non-trading financial assets mandatorily at fair value through profit or loss by instrument (16.4.1)
15.6.	Gains or losses on financial assets and liabilities designated at fair value to profit or loss by instrument (16.5)
15.7.	Gains or losses from hedge accounting (16.6)
15.8.	Impairment on non-financial assets (16.7)
15.9.	Other Administrative Expenses (16.8)
16.	Reconciliation between accounting and CRR scope of consolidation (17)
17.	Non-performing exposures (18)
17.1.	Information on performing and non-performing exposures (18.0)
17.2.	Inflows and outflows of non-performing exposures – loans and advances by counterparty sector (18.1)
17.3.	Commercial Real Estate (CRE) loans and additional information on loans secured by immovable property (18.2)
18.	Forborne exposures (19)
19.	Geographical breakdown (20)
19.1.	Geographical breakdown by location of activities (20.1-20.3)
19.2.	Geographical breakdown by residence of the counterparty (20.4-20.7)
20.	Tangible and intangible assets: assets subject to operating lease (21)
21.	Asset management, custody and other service functions (22)
21.1.	Fee and commission income and expenses by activity (22.1)
21.2.	Assets involved in the services provided (22.2)
22.	Interests in unconsolidated structured entities (30)
23.	Related parties (31)
23.1.	Related parties: amounts payable to and amounts receivable from (31.1)
23.2.	Related parties: expenses and income generated by transactions with (31.2)
24.	Group structure (40)
24.1.	Group structure: ‘entity-by-entity’ (40.1)
24.2.	Group structure: ‘instrument-by-instrument’ (40.2)
25.	Fair value (41)
25.1.	Fair value hierarchy: financial instruments at amortised cost (41.1)
25.2.	Use of fair value option (41.2)
26.	Tangible and intangible assets: carrying amount by measurement method (42)
27.	Provisions (43)
28.	Defined benefit plans and employee benefits (44)
28.1.	Components of net defined benefit plan assets and liabilities (44.1)
28.2.	Movements in defined benefit obligations (44.2)
28.3.	Staff expenses by type of benefits (44.3)
28.4.	Staff expenses by category of remuneration and category of staff (44.4)
29.	Breakdown of selected items of statement of profit or loss (45)
29.1.	Gains or losses on financial assets and liabilities designated at fair value through profit or loss by accounting portfolio (45.1)
29.2.	Gains or losses on derecognition of non-financial assets (45.2)
29.3.	Other operating income and expenses (45.3)
30.	Statement of changes in equity (46)
31.	LOANS AND ADVANCES: ADDITIONAL INFORMATION (23)
32.	LOANS AND ADVANCES: FLOWS OF NON PERFORMING EXPOSURES, IMPAIRMENTS AND WRITE OFFS SINCE THE END OF THE LAST FINANCIAL YEAR (24)
32.1.	Loans and advances: Inflows and outflows of non-performing exposures (24.1)
32.2.	Loans and advances: Flow of impairments and accumulated negative changes in fair value due to credit risk on non-performing exposures (24.2)
32.3.	Loans and advances: Write-offs of non-performing exposures during the period (24.3)
33.	COLLATERAL OBTAINED BY TAKING POSSESSION AND EXECUTION PROCESSES (25)
33.1.	Collateral obtained by taking possession other than collateral classified as Property Plant and Equipment (PP&E): inflows and outflows (25.1)
33.2.	Collateral obtained by taking possession other than collateral classified as Property Plant and Equipment (PP&E) – Type of collateral obtained (25.2)
33.3.	Collateral obtained by taking possession classified as Property Plant and Equipment (PP&E) (25.3)
34.	FORBEARANCE MANAGEMENT AND QUALITY OF FORBEARANCE (26)
35.	LOANS AND ADVANCES: AVERAGE DURATION AND RECOVERY PERIODS (47)
	MAPPING OF EXPOSURE CLASSES AND COUNTERPARTY SECTORS

PART 1

GENERAL INSTRUCTIONS

1. REFERENCES

• 1.This Annex contains additional instructions for the financial information templates (‘FINREP’) in Annexes III and IV to this Regulation. This Annex complements the instructions included in the form of references in the templates in Annexes III and IV.

• 2.Institutions that use national accounting standards compatible with IFRS (‘compatible national GAAP’) shall apply the common and IFRS instructions in this Annex, unless otherwise provided. This is without prejudice to the compliance of the compatible national GAAP requirements with the requirements of BAD. Institutions that use national GAAP requirements that are non-compatible with IFRS or that have not yet been made compatible with the requirements in IFRS 9 shall apply the common and BAD instructions in this Annex, unless provided otherwise.

• 3.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 point (77) of Article 4(1) of Regulation (EU) No 575/2013.

• 4.An institution shall only submit those parts of the templates relating to:

• (a) assets, liabilities, equity, income and expenses that are recognised by the institution;

• (b) off-balance sheet exposures and activities in which the institution is involved;

• (c) transactions performed by the institution;

• (d) valuation rules, including methods for the estimation of allowances for credit risk, applied by the institution.

• 5.For the purposes of Annexes III and IV as well as this Annex, the following abbreviations shall apply:

• (a) ‘CRR’: Regulation (EU) No 575/2013;

• (b) ‘IAS’ or ‘IFRS’: ‘International Accounting Standards’, as defined in Article 2 of Regulation (EC) No 1606/2002 of the European Parliament and of the Council ([^E0017]), which have been adopted by the Commission;

• (c) ‘ECB BSI Regulation’ or ‘ECB/2013/33’: Regulation (EU) No 1071/2013 of the European Central Bank ([^E0018]);

• (d) ‘NACE Regulation’: Regulation (EC) No 1893/2006 of the European Parliament and of the Council ([^E0019]);

• (e) ‘NACE codes’: codes in NACE Regulation;

• (f) ‘BAD’: Council Directive 86/635/EEC ([^E0020]);

• (g) ‘Accounting Directive’: Directive 2013/34/EU of the European Parliament and of the Council ([^E0021]);

• (h) ‘National GAAP’: national generally accepted accounting principles developed under BAD;

• (i) ‘SME’: micro, small and medium-sized enterprises as defined in Commission Recommendation C(2003)1422 ([^E0022]);

• (j) ‘ISIN code’: the International Securities Identification Number assigned to securities, composed of 12 alphanumeric characters, which uniquely identifies a securities issue;

• (k) ‘LEI code’: the global Legal Entity Identifier assigned to entities, which uniquely identifies a party to a financial transaction;

• (l) ‘Impairment stages’: categories of impairment as defined in IFRS 9.5.5. ‘Stage 1’ refers to impairment measured in accordance with IFRS 9.5.5.5. ‘Stage 2’ refers to impairment measured in accordance with IFRS 9.5.5.3. ‘Stage 3’ refers to impairment on credit-impaired assets as defined in Appendix A of IFRS 9;

• (m) ‘ESRB recommendation on closing real estate data gaps’ refers to the Recommendation of the European Systemic Risk Board of 31 October 2016 on closing real estate data gaps (ESRB/2016/14) ([^E0023]).

2. CONVENTIONS

• 6.For the purposes of Annexes III and IV, a data point shadowed in grey shall mean that that data point is not requested or that it is not possible to report it. In Annex IV, a row or a column with references shadowed in black shall mean that the related data points shall not be submitted by those institutions that follow those references in that row or column.

• 7.Templates in Annexes III and IV include implicit validation rules which are laid down in the templates themselves through the use of conventions.

• 8.The use of brackets in the label of an item in a template means that this item is to be subtracted to obtain a total, but it does not mean that it shall be reported as negative.

• 9.Items that shall be reported in negative are identified in the compiling templates by including ‘(-)’ at the beginning of their label such as in ‘(-) Treasury shares’.

• 10.In the ‘Data Point Model’ (‘DPM’) for financial information reporting templates of Annexes III and IV, every data point (cell) has a ‘base item’ to which the ‘credit/debit’ attribute is allocated. That allocation ensures that all entities that report data points follow the ‘sign convention’ and allows to know the ‘credit/debit’ attribute that corresponds to each data point.

• 11.Schematically, this convention works as in Table 1.

Table 1

Credit/debit convention, positive and negative signs

Element	Credit/Debit	Balance /Movement	Figure reported
Assets	Debit	Balance on assets	Positive (‘Normal’, no sign needed)
Assets	Debit	Increase on assets	Positive (‘Normal’, no sign needed)
Assets	Debit	Negative balance on assets	Negative (Minus ‘-’ sign needed)
Assets	Debit	Decrease on assets	Negative (Minus ‘-’ sign needed)
Expenses	Debit	Balance on expenses	Positive (‘Normal’, no sign needed)
Expenses	Debit	Increase on expenses	Positive (‘Normal’, no sign needed)
Expenses	Debit	Negative balance (including reversals) on expenses	Negative (Minus ‘-’ sign needed)
Expenses	Debit	Decrease on expenses	Negative (Minus ‘-’ sign needed)
Liabilities	Credit	Balance on liabilities	Positive (‘Normal’, no sign needed)
Liabilities	Credit	Increase on liabilities	Positive (‘Normal’, no sign needed)
Liabilities	Credit	Negative balance on liabilities	Negative (Minus ‘-’ sign needed)
Liabilities	Credit	Decrease on liabilities	Negative (Minus ‘-’ sign needed)
Equity	Credit	Balance on equity	Positive (‘Normal’, no sign needed)
Equity	Credit	Increase on equity	Positive (‘Normal’, no sign needed)
Equity	Credit	Negative balance on equity	Negative (Minus ‘-’ sign needed)
Equity	Credit	Decrease on equity	Negative (Minus ‘-’ sign needed)
Income	Credit	Balance on income	Positive (‘Normal’, no sign needed)
Income	Credit	Increase on income	Positive (‘Normal’, no sign needed)
Income	Credit	Negative balance (including reversals) on income	Negative (Minus ‘-’ sign needed)
Income	Credit	Decrease on income	Negative (Minus ‘-’ sign needed)

3. CONSOLIDATION

• 12.Unless specified otherwise in this Annex, FINREP templates shall be prepared using the prudential scope of consolidation in accordance with Section 2 of Chapter 2 of Title II of Part 1 CRR. Institutions shall account for their subsidiaries, joint ventures and associates using the same methods as for prudential consolidation:

• (a) institutions may be permitted or required to apply the equity method to investments in insurance and non-financial subsidiaries in accordance with Article 18(5)CRR;

• (b) institutions may be permitted to use the proportional consolidation method for financial subsidiaries in accordance with Article 18(2) CRR;

• (c) institutions may be required to use the proportional consolidation method for investment in joint ventures in accordance with Article 18(4) CRR.

4. ACCOUNTING PORTFOLIOS OF FINANCIAL INSTRUMENTS

• 13.For the purposes of Annexes III and IV as well as this Annex, ‘accounting portfolios’ means financial instruments aggregated by valuation rules. Those aggregations shall not include investments in subsidiaries, joint ventures and associates, balances receivable on demand classified as ‘Cash, cash balances at central banks and other demand deposits’, nor financial instruments classified as ‘Held for sale’ presented in the items ‘Non-current assets and disposal groups classified as held for sale’ and ‘Liabilities included in disposal groups classified as held for sale’.

• 14.Under national GAAP, institutions that are permitted or required to apply certain valuation rules for financial instruments in accordance with IFRS shall submit, to the extent that those rules are applied, the relevant IFRS accounting portfolios. Where the valuation rules for financial instruments that institutions are permitted or required to use under national GAAP based on BAD do refer to the valuation rules in IAS 39, institutions shall submit the accounting portfolios based on BAD for all their financial instruments until the valuation rules they apply refer to the valuation rules in IFRS 9.

4.1.   Financial assets

• 15.The following accounting portfolios based on IFRS shall be used for financial assets:

• (a) ‘Financial assets held for trading’;

• (b) ‘Non-trading financial assets mandatorily at fair value through profit or loss’;

• (c) ‘Financial assets designated at fair value through profit or loss’;

• (d) ‘Financial assets at fair value through other comprehensive income’;

• (e) ‘Financial assets at amortised cost’.

• 16.The following accounting portfolios based on national GAAP shall be used for financial assets:

• (a) ‘Trading financial assets’;

• (b) ‘Non-trading non-derivative financial assets measured at fair value through profit or loss’;

• (c) ‘Non-trading non-derivative financial assets measured at fair value to equity;

• (d) ‘Non-trading non-derivative financial assets measured at a cost-based method’;

• (e) ‘Other non-trading non-derivative financial assets’.

• 17.‘Trading financial assets’ includes all financial assets classified as trading under the relevant national GAAP based on BAD. Irrespective of the measurement methodology applied under the relevant national GAAP based on BAD, all derivatives with a positive balance for the reporting institution that are not classified as hedge accounting in accordance with paragraph 22 of this Part shall be reported as trading financial assets. That classification shall also apply to derivatives which according to national GAAP based on BAD are not recognised on the balance-sheet, or have only the changes in their fair value recognised on-balance sheet or which are used as economic hedges as defined in paragraph 137 of Part 2 of this Annex.

• 18.Under national GAAP based on BAD, for financial assets, ‘cost-based methods’ shall include those valuation rules by which the debt instrument is measured at cost plus interest accrued less impairment losses.

• 19.Under national GAAP based on BAD, ‘Non-trading non-derivative financial assets measured at a cost-based method’ includes financial instruments measured at cost-based methods as well as instruments measured at the lower of cost or market (‘LOCOM’) under a non-continuous basis (moderate LOCOM), regardless of their actual measurement as of the reporting reference date. Assets measured at moderate LOCOM are assets for which LOCOM is applied only in specific circumstances. The applicable accounting framework provides for those circumstances, such as impairment, a prolonged decline in fair value compared to cost or change in the management intent.

• 20.Under national GAAP based on BAD, ‘Other non-trading non-derivative financial assets’ shall include financial assets that do not qualify for inclusion in other accounting portfolios. That accounting portfolio includes, among others, financial assets that are measured at LOCOM on a continuous basis (‘strict LOCOM’). Assets measured at strict LOCOM are assets for which the applicable accounting framework either provides for the initial and subsequent measurement at LOCOM, or the initial measurement at cost and the subsequent measurement at LOCOM.

• 21.Regardless of their measurement method, investments in subsidiaries, joint ventures and associates that are not fully or proportionally consolidated under the regulatory scope of consolidation are reported in ‘Investments in subsidiaries, joint ventures and associates’, except where they are classified as held for sale in accordance with IFRS 5.

• 22.‘Derivatives – Hedge accounting’ shall include derivatives with a positive balance for the reporting institution held for hedge accounting under IFRS. Under national GAAP based on BAD, banking book derivatives shall be classified as derivatives held for hedge accounting only where there are special accounting rules for banking book derivatives under the relevant national GAAP based on BAD and the derivatives reduce risk of another position in the banking book.

4.2.   Financial liabilities

• 23.The following accounting portfolios based on IFRS shall be used for financial liabilities:

• (a) ‘Financial liabilities held for trading’;

• (b) ‘Financial liabilities designated at fair value through profit or loss’;

• (c) ‘Financial liabilities measured at amortised cost’.

• 24.The following accounting portfolios based on national GAAP shall be used for financial liabilities:

• (a) ‘Trading financial liabilities’;

• (b) ‘Non-trading non-derivative financial liabilities measured at a cost-based method’.

• 25.‘Trading financial liabilities’ includes all financial liabilities classified as trading under the relevant national GAAP based on BAD. Irrespective of the measurement methodology applied under the relevant national GAAP based on BAD, all derivatives with a negative balance for the reporting institution that are not classified as hedge accounting in accordance with paragraph 26 of this Part shall be reported as trading financial liabilities. That classification shall also apply to derivatives which according to national GAAP based on BAD are not recognised on the balance-sheet, or have only the changes in their fair value recognised on-balance sheet or which are used as economic hedges as defined in paragraph 137 of Part 2 of this Annex.

• 26.‘Derivatives – Hedge accounting’ shall include derivatives with a negative balance for the reporting institution held for hedge accounting under IFRS. Under national GAAP based on BAD, banking book derivatives shall be classified as hedge accounting only if there are special accounting rules for banking book derivatives under the relevant national GAAP based on BAD and the derivatives reduce risk of another position in the banking book.

5. FINANCIAL INSTRUMENTS

• 27.For the purposes of Annexes III and IV as well as this Annex, ‘the carrying amount’ means the amount to be reported in the balance sheet. The carrying amount of financial instruments shall include accrued interest. Under the relevant national GAAP based on BAD, the carrying amount of derivatives either shall be the carrying amount under national GAAP including accruals, premium values and provisions if applicable, or it shall be equal to zero where derivatives are not recognised on-balance sheet.

• 28.If recognised under the relevant national GAAP based on BAD, accruals and deferrals of financial instruments including interest accrual, premiums and discounts or transaction costs shall be reported together with the instrument and not as other assets or other liabilities.

• 29.Where applicable under national GAAP based on BAD, ‘Haircuts for trading positions valued at fair value’ shall be reported. The haircuts decrease the value of trading assets and increase the value of trading liabilities.

5.1.   Financial assets

• 30.Financial assets shall be distributed among the following classes of instruments: ‘Cash on hand’, ‘Derivatives’, ‘Equity instruments’, ‘Debt securities’ and ‘Loans and advances’.

• 31.‘Debt securities’ are debt instruments held by the institution issued as securities that are not loans, as defined in the Table of Part 2 of Annex II to the ECB BSI Regulation.

• 32.‘Loans and advances’ are debt instruments held by the institutions that are not securities. That item includes loans as defined in the Table of Part 2 of Annex II to the ECB BSI Regulation (including demand deposits at credit institutions and central banks, irrespective of their classification as per the applicable accounting framework) as well as advances that cannot be classified as ‘loans’ defined in the Table of Part 2 of Annex II to the ECB BSI Regulation. ‘Advances that are not loans’ are further characterized in paragraph 85(g) of Part 2 of this Annex.

• 33.In FINREP, ‘debt instruments’ shall include ‘loans and advances’ and ‘debt securities’.

5.2.   Gross carrying amount

• 34.Gross carrying amount of debt instruments shall have the following meaning:

• (a) under IFRS and national GAAP based on BAD for debt instruments measured at fair value through profit or loss without being included in the held for trading or trading portfolio, the gross carrying amount shall depend on whether those debt instruments are classified as performing or non-performing. For performing debt instruments, the gross carrying amount shall be the fair value. For non-performing debt instruments, the gross carrying amount shall be the fair value after adding back any accumulated negative changes in fair value due to credit risk, as defined in paragraph 69 of Part 2 of this Annex. For the purposes of the measurement of the gross carrying amount, the valuation of the debt instruments shall be performed on the level of single financial instruments;

• (b) under IFRS for debt instruments at amortised cost, the gross carrying amount shall be the carrying amount before adjusting for any loss allowance and for debt instruments at fair value through other comprehensive income, the amortised cost before adjusting for any loss allowance;

• (c) under national GAAP based on BAD, for debt instruments classified as ‘non-trading non-derivative financial assets measured at a cost-based method’, the gross carrying amount of impaired assets shall be equal to the carrying amount before adjusting for specific allowances for credit risk. The gross carrying amount of unimpaired assets shall be the carrying amount before adjusting for general allowances for credit risk and general allowances for banking risk, where affecting the carrying amount;

• (d) under national GAAP based on BAD, the gross carrying amount of debt instruments classified as ‘Non-trading non-derivative financial assets measured at fair value to equity’ shall depend on whether those financial assets are subject to impairment requirements. Where they are subject to impairment requirements, the gross carrying amount shall be the carrying amount before adjusting for any accumulated impairment, following the requirements in point (c) above for impaired and unimpaired assets, or any accumulated amount of fair value adjustment that is considered as impairment loss. When those financial assets are not subject to impairment requirements, the gross carrying amount of those financial assets shall be the fair value for performing exposures, and for non-performing exposures the fair value after adding back any accumulated negative fair value adjustment due to credit risk;

• (e) under national GAAP based on BAD, the gross carrying amount of debt instruments measured at strict or moderate LOCOM shall be the cost where measured at cost during the reporting reference period. Where those debt instruments are measured at market value, the gross carrying amount shall be the market value before adjusting for credit-risk induced value adjustments;

• (f) under national GAAP based on BAD, for debt instruments reported under ‘Other non-trading non-derivative financial assets’ under measurement methods other than LOCOM, the gross carrying amount shall be the carrying amount before taking into account any valuation adjustment that qualifies as impairment;

• (g) for trading financial assets under GAAP based on BAD or held for trading financial assets under IFRS, the gross carrying amount shall be the fair value. Where GAAP based on BAD require haircuts on trading and fair valued instruments, the carrying amount of the financial instruments shall be the fair value before those haircuts.

5.3.   Financial liabilities

• 35.Financial liabilities shall be distributed among the following classes of instruments: ‘Derivatives’, ‘Short positions’, ‘Deposits’, ‘Debt securities issued’ and ‘Other financial liabilities’.

• 36.For the purposes of Annexes III and IV as well as this Annex, ‘deposits’ shall be deposits as defined in the Table of Part 2 of Annex II to the ECB BSI Regulation.

• 37.‘Debt securities issued’ shall be debt instruments issued as securities by the institution that are not deposits, as defined in the Table of Part 2 of Annex II to the ECB BSI Regulation.

• 38.‘Other financial liabilities’ shall include all financial liabilities other than derivatives, short positions, deposits and debt securities issued.

• 39.Under IFRS, ‘Other financial liabilities’ shall include financial guarantees given where they are measured either at fair value through profit or loss (IFRS 9.4.2.1(a)) or at the amount initially recognised less cumulative amortization (IFRS 9.4.2.1(c)(ii)). Loan commitments given shall be reported as ‘Other financial liabilities’ where they are designated as financial liabilities at fair value through profit or loss (IFRS 9.4.2.1(a)) or they are commitments to provide a loan at a below-market interest rate (IFRS 9.2.3(c), IFRS 9.4.2.1(d)).

• 40.Where loan commitments, financial guarantees and other commitments given are measured at fair value through profit or loss, any change in the fair value, including changes due to credit risk, shall be reported as ‘other financial liabilities’ and not as provisions for ‘Commitments and guarantees given’.

• 41.‘Other financial liabilities’ shall also include dividends to be paid, amounts payable in respect of suspense and transit items, and amounts payable in respect of future settlements of transactions in securities or foreign exchange transactions where payables for transactions are recognised before the payment date.

6. COUNTERPARTY BREAKDOWN

• 42.Where a breakdown by counterparty is required the following counterparty sectors shall be used:

• (a) central banks;

• (b) general governments: central governments, state or regional governments, and local governments, including administrative bodies and non-commercial undertakings, but excluding public companies and private companies held by these administrations that have a commercial activity (which shall be reported under ‘credit institutions’, ‘other financial corporations’ or ‘non-financial corporations’ depending on their activity); social security funds; and international organisations, such as institutions of the European Union, the International Monetary Fund and the Bank for International Settlements;

• (c) credit institutions: any institution covered by the definition in point (1) of Article 4(1) CRR (‘undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account’) and multilateral development banks (MDBs);

• (d) other financial corporations: all financial corporations and quasi-corporations, other than credit institutions, such as investment firms, investment funds, insurance companies, pension funds, collective investment undertakings, and clearing houses as well as remaining financial intermediaries, financial auxiliaries and captive financial institutions and money lenders;

• (e) non-financial corporations (NFCs): corporations and quasi-corporations not engaged in financial intermediation but principally in the production of market goods and non-financial services, as defined in the Table of Part 3 of Annex II to the ECB BSI Regulation;

• (f) households: individuals or groups of individuals as consumers and producers of goods and non-financial services exclusively for their own final consumption, and as producers of market goods and non-financial and financial services provided that their activities are not those of quasi-corporations. Non-profit institutions which serve households (‘NPISH’) and which are principally engaged in the production of non-market goods and services intended for particular groups of households shall be included.

• 43.The counterparty sector allocation shall be based exclusively on the nature of the immediate counterparty. The classification of the exposures incurred jointly by more than one obligor shall be done on the basis of the characteristics of the obligor that was the more relevant, or determinant, for the institution to grant the exposure. Among other classifications, the distribution of jointly incurred exposures by counterparty sector, country of residence and NACE codes shall be driven by the characteristics of the more relevant or determinant obligor.

• 44.The immediate counterparties in the following transactions shall be:

• (a) for loans and advances, the immediate borrower. For trade receivables, the immediate borrower shall be the counterparty obliged to pay the receivables, except in transactions with recourse, where the immediate borrower shall be the transferor of receivables where the reporting institution does not acquire substantially all the risks and rewards of ownership of the transferred receivables;

• (b) for debt securities (including securitisation instruments) and equity instruments, the issuer of the securities;

• (c) for deposits, the depositor;

• (d) for short positions, the counterparty of the securities borrowing transaction or reverse repurchase agreement;

• (e) for derivatives, the direct counterparty of the derivative contract. For centrally cleared OTC derivatives, the direct counterparty shall be the clearing house acting as a central counterparty. Counterparty breakdown for credit risk derivatives refers to the sector where the counterparty of the contract (buyer or seller of protection) belongs;

• (f) for financial guarantees given, the counterparty shall be the direct counterparty of the underlying guaranteed debt instrument;

• (g) for loan commitments and other commitments given, the counterparty whose credit risk is assumed by the reporting institution;

• (h) for loan commitments, financial guarantees and other commitments received, the guarantor or the counterparty that has provided the commitment to the reporting institution.

PART 2

TEMPLATE RELATED INSTRUCTIONS

1. BALANCE SHEET

1.1.   Assets (1.1)

• 1.‘Cash on hand’ shall include holdings of national and foreign banknotes and coins in circulation that are commonly used to make payments.

• 2.‘Cash balances at central banks’ shall include ‘loans and advances’ that are balances receivable on demand at central banks.

• 3.‘Other demand deposits’ shall include ‘loans and advances’ that are balances receivable on demand with credit institutions.

• 4.‘Investments in subsidiaries, joint ventures and associates’ shall include the investments in associates, joint ventures and subsidiaries which are not fully or proportionally consolidated under the regulatory scope of consolidation, except where they shall be classified as held for sale in accordance with IFRS 5, irrespective of how they are measured, including where the accounting standards allow for them to be included in the different accounting portfolios used for financial instruments. The carrying amount of investments accounted for using the equity method shall include related goodwill.

• 5.Assets that are not financial assets and that due to their nature could not be classified in specific balance sheet items shall be reported in ‘Other assets’. Other assets shall include, among others, gold, silver and other commodities, even where they are held with trading intent.

• 6.Under the relevant national GAAP based on BAD, the carrying amount of repurchased own shares shall be reported as ‘other assets’ where presentation as asset is allowed under the relevant national GAAP.

• 7.‘Non-current assets and disposal groups classified as held for sale’ shall have the same meaning as under IFRS 5.

1.2.   Liabilities (1.2)

• 8.Under national GAAP based on BAD, provisions for contingent losses arising from the ineffective part of portfolio hedge relationship shall be reported in row ‘Derivatives – Hedge accounting’ where the loss arises from the valuation of the hedging derivative, or in row ‘Fair value changes of the hedged items in portfolio hedge of interest rate risk’ where the loss arises from the valuation of the hedged position. Where no distinction between losses arising from the valuation of the hedging derivative and loss arising from the valuation of the hedged position is possible, all provisions for contingent losses arising from the ineffective part of the portfolio hedge relationship shall be reported in row ‘Derivatives – Hedge accounting’.

• 9.Provisions for ‘Pensions and other post-employment defined benefit obligations’ shall include the amount of net defined benefit liabilities.

• 10.Under IFRS, provisions for ‘Other long-term employee benefits’ shall include the amount of the deficits in the long-term employment benefit plans listed in IAS 19.153. The accrued expense from short-term employee benefits (IAS 19.11(a)), defined contribution plans (IAS 19.51(a)) and termination benefits (IAS 19.169(a)) shall be included in ‘Other liabilities’.

• 11.Under IFRS, provisions for ‘Commitments and guarantees given’ shall include provisions related to all commitments and guarantees, irrespective of whether their impairment is determined in accordance with IFRS 9 or their provisioning follows IAS 37 or whether they are treated as insurance contracts under IFRS 4. Liabilities arising from commitments and financial guarantees measured at fair value through profit or loss shall not be reported as provisions although they are due to credit risk, but as ‘other financial liabilities’ in accordance with paragraph 40 of Part 1 of this Annex. Under national GAAP based on BAD, provisions for ‘Commitments and guarantees given’ shall include provisions related to all commitments and guarantees.

• 12.‘Share capital repayable on demand’ shall include the capital instruments issued by the institution that do not meet the criteria to be classified in equity. Institutions shall include in this item the cooperative shares that do not meet the criteria to be classified in equity.

• 13.Liabilities that are not financial liabilities and that due to their nature could not be classified in specific balance sheet items shall be reported in ‘Other liabilities’.

• 14.‘Liabilities included in disposal groups classified as held for sale’ shall have the same meaning as under IFRS 5.

• 15.Under national GAAP based on BAD ‘Funds for general banking risks’ are amounts that have been assigned in accordance with Article 38 of BAD. Where recognised, they shall appear separately either as liabilities under ‘provisions’ or within equity under ‘other reserves’ in accordance with the relevant national GAAP.

1.3.   Equity (1.3)

• 16.Under IFRS, equity instruments that are financial instruments shall include those contracts under the scope of IAS 32.

• 17.Under the relevant national GAAP based on BAD, ‘Unpaid capital which has been called up’ shall include the carrying amount of capital issued by the institution that has been called-up to the subscribers but not paid at the reference date. If capital increase, not yet paid, is recorded as an increase of share capital, unpaid capital which has been called up shall be reported in ‘Unpaid capital which has been called up’ in template 1.3 as well as in ‘other assets’ in template 1.1. Under the relevant national GAAP based on BAD, where capital increase can be recorded only following the receipt of the payment from shareholders, unpaid capital shall not be reported in template 1.3.

• 18.‘Equity component of compound financial instruments’ shall include the equity component of compound financial instruments (that is, financial instruments that contain both a liability and an equity component) issued by the institution, where segregated in accordance with the relevant accounting framework (including compound financial instruments with multiple embedded derivatives the values of which are interdependent).

• 19.‘Other equity instruments issued’ shall include equity instruments that are financial instruments other than ‘Capital’ and ‘Equity component of compound financial instruments’.

• 20.‘Other equity’ shall comprise all equity instruments that are not financial instruments including, among others, equity-settled share-based payment transactions (IFRS 2.10).

• 21.‘Fair value changes of equity instruments measured at fair value through other comprehensive income’ shall include accumulated gains and losses due to changes in fair value on investments in equity instruments for which the reporting entity has made the irrevocable election to present changes in fair value in other comprehensive income.

• 22.‘Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income’ shall comprise the accumulated hedge ineffectiveness arising in fair value hedges in which the hedged item is an equity instrument measured at fair value through other comprehensive income. Hedge ineffectiveness reported in this row shall be the difference between the accumulated variation of the fair value of the equity instrument reported in ‘Fair value changes of equity instruments measured at fair value through other comprehensive income (hedged item)’ and the accumulated variations of the fair value of the hedging derivative reported in ‘Fair value changes of equity instruments measured at fair value through other comprehensive income (hedging instrument)’ (IFRS 9.6.5.3 and IFRS 9.6.5.8).

• 23.‘Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in the credit risk’ shall include accumulated gains and losses recognised in other comprehensive income and related to own credit risk for liabilities designated at fair value through profit or loss, regardless of whether the designation takes place at initial recognition or subsequently.

• 24.‘Hedge of net investments in foreign operations (effective portion)’ shall include the foreign currency translation reserve for the effective portion of both on-going hedges of net investments in foreign operations and hedges of net investments in foreign operations that no longer apply while the foreign operations remain recognised in the balance sheet.

• 25.‘Hedging derivatives. Cash flow hedges reserve (effective portion)’ shall include the cash flow hedge reserve for the effective portion of the variation in fair value of hedging derivatives in a cash flow hedge, both for on-going cash flow hedges and cash flow hedges that no longer apply.

• 26.‘Fair value changes of debt instruments measured at fair value through other comprehensive income’ shall include accumulated gains or losses on debt instruments measured at fair value through other comprehensive income, net of the loss allowance that is measured at the reporting date in accordance with IFRS 9.5.5.

• 27.‘Hedging instruments (not designated elements)’ shall include the accumulated changes in fair value of all of the following:

• (a) the time value of an option where the changes in the time value and the intrinsic value of that option are separated and only the change in the intrinsic value is designated as a hedging instrument (IFRS 9.6.5.15);

• (b) the forward element of a forward contract where the forward element and the spot element of that forward contract are separated and only the change in the spot element of the forward contract is designated as hedging instrument;

• (c) the foreign currency basis spread from a financial instrument where this spread is excluded from the designation of that financial instrument as the hedging instrument (IFRS 9.6.5.15, IFRS 9.6.5.16).

• 28.Under IFRS, ‘Revaluation reserves’ shall include the amount of reserves resulting from first-time adoption to IAS that have not been released to other type of reserves.

• 29.‘Other reserves’ shall be split between ‘Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method’ and ‘Other’. ‘Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method’ shall include the accumulated amount of income and expenses generated by the aforementioned investments through profit or loss in past years where they are accounted for using the equity method. ‘Other’ shall include reserves different from those separately disclosed in other items and may include legal reserve and statutory reserve.

• 30.‘Treasury shares’ shall cover all financial instruments that have the characteristics of own equity instruments which have been reacquired by the institution while they are not sold or amortised, except where under the relevant national GAAP based on BAD they shall be reported in ‘other assets’.

2. STATEMENT OF PROFIT OR LOSS (2)

• 31.Interest income and interest expense from financial instruments measured at fair value through profit or loss and from hedging derivatives classified in the category ‘hedge accounting’ shall be reported either separately from other gains and losses under items ‘interest income’ and ‘interest expense’ (‘clean price’) or as part of gains or losses from these categories of instruments (‘dirty price’). The clean or dirty price approach shall be applied consistently for all financial instruments measured at fair value through profit or loss and for hedging derivatives classified in the category ‘hedge accounting’.

• 32.Institutions shall report the following items, which include income and expense in relation to related parties not fully or proportionally consolidated under the regulatory scope of consolidation, broken down by accounting portfolios:

• (a) ‘Interest income’;

• (b) ‘Interest expense’;

• (c) ‘Dividend income’;

• (d) ‘Gains or losses on derecognition of financial assets and liabilities not measured at fair value through profit or loss, net’;

• (e) ‘Modification gains or losses, net’;

• (f) ‘Impairment or (-) reversal of impairment on financial assets not measured at fair value through profit or loss’.

• 33.‘Interest income. Financial assets held for trading’ and ‘Interest expenses. Financial liabilities held for trading’ shall include, where the clean price is used, the amounts related to those derivatives classified in the category ‘held for trading’ which are hedging instruments from an economic but not accounting point of view to present correct interest income and expenses from the financial instruments that are hedged.

• 34.Where the clean price is used, ‘Interest income. Financial assets held for trading’ and ‘Interest expenses. Financial liabilities held for trading’ shall also include time-apportioned fees and balancing payments in relation to credit derivatives measured at fair value and used to manage the credit risk of part or all of a financial instrument that is designated at fair value at that occasion (IFRS 9.6.7).

• 35.‘Interest income. Derivatives – Hedge accounting, interest rate risk’ and ‘Interest expenses. Derivatives – Hedge accounting, interest rate risk’ shall include, where the clean price is used, the amounts related to those derivatives classified in the category ‘hedge accounting’ which cover interest rate risk, including hedges of a group of items with offsetting risk positions (hedges of a net position) whose hedged risk affect different line items in the statement of profit or loss. Where the clean price is used, those amounts shall be reported as interest income and expenses on a gross basis to present correct interest income and expenses from the hedged items to which they are linked. With clean price, where the hedged item generates interest income (expense), those amounts shall be reported as an interest income (expense) even where it is a negative (positive) amount.

• 36.‘Interest income – other assets’ shall include amounts of interest income not included in the other items, like interest income related to cash, cash balances at central banks and other demand deposits and to non-current assets and disposal groups classified as held for sale as well as net interest income from net defined benefit asset.

• 37.Under IFRS and where not provided otherwise in national GAAP, interest in relation to financial liabilities with a negative effective interest rate shall be reported in ‘Interest income on liabilities’. These liabilities and their interests give rise to a positive yield for an institution.

• 38.‘Interest expenses – other liabilities’ shall include amounts of interest expenses not included in the other items, like interest expenses related to liabilities included in disposal groups classified as held for sale, expenses derived from increases in the carrying amount of a provision reflecting the passage of time or net interest expenses from net defined benefit liabilities.

• 39.Under IFRS and where not provided otherwise in national GAAP, interest in relation to financial assets with a negative effective interest rate shall be reported in ‘Interest expense on assets’. Those assets and their interests give rise to a negative yield for an institution.

• 40.Dividend income on equity instruments measured at fair value through profit or loss shall be reported either as ‘dividend income’ separately from other gains and losses from those classes of instruments where the clean price is used, or as part of gains or losses from those classes of instruments where the dirty price is used.

• 41.Dividend income on equity instruments designated at fair value through other comprehensive income shall encompass dividends related to instruments derecognised during the reporting reference period and dividends related to instruments held at the end of the reporting reference period.

• 42.Dividend income from investments in subsidiaries, joint ventures and associates shall include the dividends of those investments where they are accounted for using other than the equity method.

• 43.‘Gains or (-) losses on financial assets and liabilities held for trading, net’ shall include gains and losses in the remeasurement and derecognition of financial instruments classified as held for trading. This item shall also include gains and losses on credit derivatives measured at fair value through profit or loss used to manage the credit risk of all, or part of, a financial instrument that is designated as measured at fair value through profit or loss, as well as dividend and interest income and expense on financial assets and liabilities held for trading where the dirty price is used.