We summarize below the text of paragraphs 36-38 of Part 2 of Annex V (FINREP Instructions).
"Specific allowances for individually assessed financial assets " shall include the cumulative amount of impairments related to financial assets which have been assessed individually.
"Specific allowances for collectively assessed financial assets " shall include the cumulative amount of collective impairments calculated on insignificant loans which are impaired on individual basis and for which the institution decides to use a statistical approach (portfolio basis). This approach does not preclude performing individual impairment evaluations of loans that are individually insignificant and reporting these as specific allowances for individually assessed financial assets.
"Collective allowances for incurred but not reported losses " shall include the cumulative amount of collective impairments determined on financial assets which are not impaired on individual basis. For "allowances for incurred but not reported losses ", IAS 39.59(f), AG87 and AG90 may be followed. In order to fill in the FINREP templates F 04.04 and F 07.00, the collective impairment allowances should be proportionally allocated among group assets that are unimpaired but subject to impairment.