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)
NACE (6) Gross carrying amount of loans and advances to non-financial corporations shall be classified by sector of economic activities using codes in NACE Regulation (“NACE Codes”) on the basis of the principal activity of the counterparty. The classification of the exposures incurred jointly by more than one obligor shall be done in accordance with paragraph 36 in Part 1. Reporting of NACE codes shall be done with the first level of disaggregation, (by “section”). For debt instruments at amortised cost or at fair value through other comprehensive income, “Gross carrying amount” shall mean the carrying amount excluding “Accumulated impairment”. For debt instruments at fair value through profit and loss, “Gross carrying amount” shall mean the carrying amount excluding “Accumulated changes in fair value due to credit risk”. “Accumulated impairment” shall be reported for financial assets at amortised cost or at fair value through other comprehensive income. “Accumulated changes in fair value due to credit risk” figures shall be reported for financial assets at fair value through profit or loss. “Accumulated impairment” shall include specific allowances for financial assets, individually and collectively estimated as defined in paragraphs 36 and 37as well as “Collective allowances for incurred but not reported losses” as defined in paragraph 38 but do not include “Accumulated write-offs” amounts as defined in paragraph 49 of this Part. (7) Debt instruments that are past due but not impaired at the reporting reference date shall be reported in the accounting portfolios subject to impairment. According to IFRS or compatible National GAAP, these accounting portfolios comprise the categories “Available for sale”, “Loans and receivables”, and “Held-to-maturity”. According to National GAAP based on BAD, these accounting portfolios comprise also “Non-trading debt instruments measured at a cost-based method” and “Other non-trading financial assets”. Assets qualify as past due when counterparties have failed to make a payment when contractually due. The whole amounts of such assets shall be reported and broken down according to the number of days of the oldest past due instalment. The past due analysis shall not include any impaired assets. The carrying amount of impaired financial assets shall be reported separately from the past due assets. derivative
The column “Accumulated write-offs” includes the cumulative amount of principal and past due interest of any debt instrument that the institution is no longer recognising because they are considered uncollectible, independently of the portfolio in which they were included. These amounts shall be reported until the total extinguishment of all the institution’s rights (by expiry of the statute-of–limitations period, forgiveness or other causes) or until recovery. “Write-offs” could be caused both by reductions of the carrying amount of financial assets recognised directly in profit or loss as well as by reductions in the amounts of the allowance accounts for credit losses taken against the carrying amount of financial assets . (8) As “Deposits” are defined in the same way as in the ECB BSI Regulation, regulated savings deposits shall be classified in accordance with the ECB BSI Regulation and distributed according to the counterparty. In particular, sight savings deposits, which although legally redeemable at demand are subject to significant penalties and restrictions and have features that are very close to overnight deposits, are classified as deposits redeemable at notice. “Debt securities issued” shall be disaggregated into the following type of products: (a) “Certificates of deposits” are securities that enable the holders to withdraw funds from an account, (b) “Asset backed securities” according to article 4(1)(61) of the CRR, (c) “Covered Bonds” according to article 129(1) of the CRR, (d) “Hybrid contracts” comprise contracts with embedded derivatives, (e) debt securities issued” includes debt securities not recorded in the previous lines and distinguishes convertible and non convertible instruments. “Subordinated financial liabilities” issued are treated in the same way as other financial liabilities incurred. Subordinated liabilities issued in the form of securities are classified as “Debt securities issued”, whereas subordinated liabilities in the form of deposits are classified as “Deposits”. Template 8.2 includes the carrying amount of “Deposits” and “Debt securities issued” that meet the definition of subordinated debt classified by accounting portfolios. “Subordinated debt” instruments provide a subsidiary on the issuing institution that can only be exercised after all claims with a higher status have been satisfied [ECB BSI Regulation]. (9)
Note issuance facilities (NIFs) and revolving underwritings facilities (RUFs). “Undrawn credit facilities” which 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”. “Undrawn credit facilities for tender and performance guarantees”. “Other off-balance sheet items” in Annex I of the CRR. Under IFRS or compatible National GAAP, the following item are recognised in the balance sheet and, consequently, should not be reported as off-balance sheet exposures: “Credit derivatives” that do not meet the definition of financial guarantees are “derivatives” under IAS 39. “Acceptances” are obligations by an institution to pay on maturity the face value of a bill of exchange, normally covering the sale of goods. Consequently, they are classified as “trade receivables” on the balance sheet “Endorsements on bills” that do not meet the criteria for derecogniton under IAS 39. “Transactions with recourse” that do not meet the criteria for derecogniton under IAS 39. “Assets purchased under outright forward purchase agreements” are “derivatives” under IAS 39. “Asset sale and repurchase agreements as defined in Article 12 (3) and (5) of Directive 86/635/EEC”. In these contracts, the transferee has the option, but not the obligation, to return the assets at a price agreed in advance on a date specified (or to be specified). Therefore, these contracts meet the definition of derivatives under IAS 39.9. “of which: defaulted” shall include the nominal amount of those loan commitments, financial guarantees and other commitments given whose counterparty has incurred in default according to Article 178 of the CRR. For off-balance sheet exposures, the “Nominal amount” is the amount that best represents the institution’s maximum exposure to credit risk without taking account of any collateral held or other credit enhancements. In particular, for financial guarantees given, the nominal amount is the maximum amount the entity could have to pay if the guarantee is called on. For loan commitments, the nominal amount is the undrawn amount that the
“Accounting treatment [CRR 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” means 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 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. “Security code” and “Holding company code” are a composite row identifier, and together shall be unique for each row in template 40.2. “Holding company code” is the identification code of the entity within the group that holds the investment. “Entity code”, “Accumulated equity interest (%)”, “Carrying amount” and “Acquisition cost” are defined above. The amounts shall correspond to the security held by the related holding company. (41) Fair value hierarchy: financial instruments at amortised cost (41.1) Information on the fair value of financial instruments measured at amortised cost, using the hierarchy in IFRS 7.27A shall be reported in this template. Use of fair value option (41.2) Information on the use of fair value option for financial assets and liabilities designated at fair value through profit or loss shall be reported in this template. “Hybrid contracts” includes the carrying amount of hybrid financial instruments classified, as a whole, in these accounting portfolios; that is, it includes non-separated hybrid instruments in their entirely. Hybrid financial instruments not designated at fair value through profit or loss (41.3) In this template be reported information on hybrid financial instruments with the exception of those hybrid contracts measured at fair
183. “Accumulated impairment” and “Accumulated changes in fair value due to credit risk” shall be reported in accordance with paragraph 46. “Accumulated impairment” means the reduction in the carrying amount either directly or through use of an allowance account. The amount of “accumulated impairment” to be reported in the column “on non-performing exposures with forbearance measures” for non-performing exposures shall not include incurred but not reported losses. Incurred but not reported losses shall be reported in the column “on performing exposures with forbearance measures”. “Accumulated changes in fair value due to credit risk” are reported for exposures designated at fair value through profit and loss in accordance with the applicable accounting framework. PART 3 The following tables map exposure classes used to calculate capital requirements according to the CRR to counterparty sectors used in FINREP tables. Table 2 Standardised Approach SA exposure classes (CRR article 112) FINREP counterparty sectors Comments (a) Central governments or central banks (1) Central (2) General governments These 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 banks (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 (g) Corporates (2) General governments (4) Other financial corporations (5) Non financial corporations. (6) Households (h) Retail (4) Other financial corporations (5) Non financial corporations (6) Households 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 as well as some general governments and multilateral banks) (2) General governments (3) Credit institutions (4) 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 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 under different categories of financial assets (f) Securitisation positions (2) General governments (3) Credit institutions (4) Other financial corporations (5) Non-financial corporations (6) Households These 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.