What is the meaning of the references to IAS 39 AG 84-92 provisions (related to impairment losses) in the column 110 of F 07.00 template?
F 07.00 template requests the reporting of “Accumulated write-offs” in the column 110, column which includes, inter alia, references to IAS 39 AG 84-92 provisions (related to impairment losses). By correlating the provisions of para.46 and 49 from Part 2 of Annex V to the ITS (FINREP instructions), our understanding is that the impairment allowances reported in columns 80-100 of F 07.00 should not be also reported in the column 110.
The reference to IAS 39 (AG 84-92) in column 110 of Table F 07.00 is consistent, as these paragraphs describe how the impairment regime works under IFRS. IAS 39.63 refers to two technical manners of reducing the carrying amount of an asset as a result of an impairment loss: either directly by writing it off or through use of an allowance account.
Indeed, according to paragraph 49 of Part 2 of Annex V of the
Draft ITS, column 110 of table F 07.00 contains "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".
Columns 080 to 100 of table F 07.00 shall report the amounts of the "specific and collective allowances". The "accumulated write-off" describes the amount by which the outstanding value of the principal and the interest has been already reduced directly through the Income Statement or through an allowance account (they are not part of balance sheet any more) and institution's rights to its repayment are not expired yet.
As explained in the answer to QA 2013_202: 'Accumulated written-off amounts "shall be reported until the total extinguishment of all the institution 19s rights (by expiry of the statute-of 13limitations period, forgiveness or other causes) or until recovery 1d. Therefore, the institution shall continue reporting the written-off amounts until the total extinguishment of all the institution 19s rights'. Therefore, there is no direct link between columns 080 to 100, and column 110 in F 07.00.
*As of 1/8/2014 the content of this answer was modified to reflect the publication of the final ITS on supervisory reporting of institutions in the Official Journal of the European Union. As a result, the references to the ITS were updated and the disclaimer deleted. For reasons of transparency, revisions are highlighted in track changes.