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) Increase on assets Positive ("Normal", no sign needed) Negative balance on assets Negative (Minus "-" sign needed) Decrease on assets Negative (Minus "-" sign needed) Expenses Balance on expenses Positive ("Normal", no sign needed) Increase on expenses Positive ("Normal", no sign needed) Negative balance (including reversals) on expenses Negative (Minus "-" sign needed) Decrease on expenses Negative (Minus "-" sign needed) Liabilities Credit Balance on liabilities Positive ("Normal", no sign needed) Increase on liabilities Positive ("Normal", no sign needed) Negative balance on liabilities Negative (Minus "-" sign needed) Decrease on liabilities Negative (Minus "-" sign needed) Equity Balance on equity Positive ("Normal", no sign needed) Increase on equity Positive ("Normal", no sign needed) Negative balance on equity Negative (Minus "-" sign needed) Decrease on equity Negative (Minus "-" sign needed) Income Balance on income Positive ("Normal", no sign needed) Increase on income Positive ("Normal", no sign needed) Negative balance (including reversals) on income Negative (Minus "-" sign needed) Decrease on income Negative (Minus "-" sign needed)
“Loan commitments” are firm commitments to provide credit under terms and conditions, except those that are derivatives because they can be settled net in cash or by delivering or issuing another financial instrument. The following items of Annex I of the CRR that shall be classified as “Loan commitments”: “Forward deposits”. “Undrawn credit facilities” which comprise agreements to “lend” or provide “acceptance facilities” under pre-specified terms and conditions. “Financial guarantees” are contracts that require the issuer to make specified payments to reimburse the holder of a loss it incurs, because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument. Under IFRS or compatible National GAAP, these contracts meet the IAS 39.9 and IFRS 4.A definition of financial guarantee contracts. The following items of Annex I of the CRR that shall be classified as “financial guarantees”: “Guarantees having the character of credit substitute”. “Credit derivatives” that meet the definition of financial guarantee. “Irrevocable standby letters of credit having the character of credit substitutes”. “Other commitments” includes the following items of Annex I of the CRR: “Unpaid portion of partly-paid shares and securities”. “Documentary credits issued or confirmed”. Trade finance Off-balance sheet items. “Documentary credits in which underlying shipment acts as collateral and other self-liquidating transactions”. “Warranties and indemnities” (including tender and performance bonds) and “guarantees not having the character of credit substitutes”. “Shipping guarantees, customs and tax bonds”. Note issuance facilities (NIFs) and revolving underwritings facilities (RUFs). “Undrawn credit facilities” comprise agreements to “lend” or provide “acceptance facilities” when the terms and conditions are not “Undrawn credit facilities” which comprise agreements to “purchase securities” or “provide guarantees”.
“Equity of Investee”, “Total assets of the Investee” and “Profit or (loss) of the Investee” include the amounts of these items in the last financial statements of the investee. “Residence of investee” means the country of residence of the investee. “Sector of investee” the sector of counterparty as defined in paragraph 25 of Part 1. “NACE code” shall be provided on the basis of the principal activity of the investee. For non-financial corporations, NACE codes shall be reported with the first level of disaggregation (by “section”); for financial corporations, NACE codes shall be reported with a two level detail (by “division”). “Accumulated equity interest (%)” is the percentage of ownership instruments held by the institution as of the reference date. “Voting rights (%)” means the percentages of voting rights associated to the ownership instruments held by the institution as of the reference date. “Group structure [relationship]” shall indicate the relationship between the parent and the investee (subsidiary, joint venture or associate). “Accounting treatment [Accounting Group]” shall indicate the accounting treatment with the accounting scope of consolidation (full consolidation, proportional consolidation or equity method). “Accounting treatment [CRR Group]” shall indicate the accounting treatment with the CRR scope of consolidation (full integration, proportional integration or equity method). “Carrying amount” means amounts reported on the balance sheet of the institution for investees that are neither fully nor proportionally consolidated. “Acquisition cost” means the amount paid by the investors. “Goodwill link to the investee” the amount of goodwill reported on the consolidated balance sheet of the institution for the investee in the items “goodwill” or “investments in subsidiaries, joint ventures and associated”. “Fair value of the investments for which there are published price quotations” means the price at the reference date; it shall be provided only if the instruments are quoted. Group structure: “instrument-by-instrument” (40.2) The following information shall be reported on an basis: “Security code” includes the ISIN code of the security. For securities without ISIN code assigned, it includes another code that uniquely identifies the security. “Holding company code” is the identification code of the entity within the group that holds the investment.
Other operating income and expenses shall be broken down according to the following items: fair value adjustments on tangible assets measured using the fair value model; rental income and direct operating expenses from investment property; income and expenses on operating leases other than investment property and the rest of operating income and expenses. "Operating leases other than investment property" includes, for the column “income”, the returns obtained, and for the column “expenses” the costs incurred by the institution as lessor in their operating leasing activities other than those with assets classified as investment property. The costs for the institution as lessee shall be included in the item “Other administrative expenses”. Gains or losses from remeasurements of holdings of precious metals and other commodities measured at fair value less cost to sell shall be reported among the items included in “Other operating income. Other” or “Other operating expenses. Other” (46) The statement of changes in equity discloses the reconciliation between the carrying amount at the beginning of the period (opening balance) and the end of the period (closing balance) for each component of equity. PART 3 The following tables map exposure classes used to calculate capital requirements according to the CRR to counterparty sectors classes used in FINREP tables. Table 2 Standardised Approach SA exposure classes (CRR article 107) FINREP counterparty sectors Comments (a) Central governments or central banks (1) Central banks (2) General governments exposures shall be assigned to FINREP counterparty sectors according to the nature of the immediate counterparty (b) Regional governments or local authorities (2) General governments (c) Public sector entities (2) General governments (d) Multilateral development (3) Credit institutions (e) International organisations (2) General governments (f) Institutions (i.e. credit institutions and investment firms) (3) Credit institutions (4) Other financial corporations These exposures shall be assigned to FINREP counterparty sectors according to the nature of the immediate counterparty
Table 3 Internal Ratings Based Approach IRBA exposure classes (CRR article 142) FINREP counterparty sectors Comments (a) Central governments and central banks (1) Central banks (2) General governments (3) Credit institutions These exposures shall be assigned to FINREP counterparty sectors according to the nature of the immediate counterparty (b) Institutions (i.e. credit institution and investment firms as well as some general governments and multilateral banks) (2) General governments (3) Credit institutions (4) Other financial corporations These exposures shall be assigned to FINREP counterparty sectors according to the nature of the immediate counterparty (c) Corporates (4) Other financial corporations (5) Non-financial corporations (6) Households These exposures shall be assigned to FINREP counterparty sectors allocation classes according to the nature of the immediate counterparty (d) Retail (4) Other financial corporations (5) Non financial corporations (6) Households exposures shall be assigned to FINREP counterparty sectors according to the nature of the immediate counterparty (e) Equity Equity instruments In FINREP, equities are separated as instruments different categories of financial assets (f) Securitisation positions (2) General governments (3) Credit institutions (4) Other financial corporations (5) Non-financial corporations (6) Households exposures shall be assigned to FINREP counterparty sectors according to the underlying risk of the securitisation positions. In FINREP, when securitized positions remain recognised in the balance sheet, the counterparty sectors are the sectors of the immediate counterparties of these positions (g) Other non credit obligations Various items of the balance sheet In FINREP, other items may be included under different asset categories.