Question ID:
2013_87
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Supervisory reporting - FINREP (incl. FB&NPE)
Article:
Article 99
Paragraph:
5
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)
Article/Paragraph:
Annex III, F 16.07, (r070, 080, 090)
Disclose name of institution / entity:
Yes
Name of institution / submitter:
CREDIT AGRICOLE
Country of incorporation / residence:
FRANCE
Type of submitter:
Credit institution
Subject Matter:
FINREP - F16.7 Impairment on financial and non-financial assets - "Impairment or (-) reversal of impairment of investments in subsidaries, joint ventures and associates" (Rows 070 à 090)
Question:

FINREP - Template 16.7 Impairment on financial and non-financial assets - "Impairment or (-) reversal of impairment of investments in subsidaries, joint ventures and associates" (Rows 070 à 090) : in spite of the reference to IAS 28, we presume that the row 080 "joint ventures" anticipates IFRS 11 (with the end of proportionally consolidation). But we don't understand what is expected on the row 070 "subsidiaries" : these one are all fully consolidated and not with the equity method.

Background on the question:

We need this information for FINREP mapping.

Date of submission:
26/07/2013
Published as Final Q&A:
14/02/2014
EBA Answer:

FINREP templates (with the exception of template F 17 and F 40) are applied based on the CRR scope of consolidation which excludes, among others, insurance corporations and other non-financial subsidiaries. These subsidiaries, which do not appear in the consolidated financial statements, shall be accounted for in the balance sheet as "Investments in subsidiaries, joint ventures and associates ". In those cases where these investments are impaired, related amounts shall be reported in row 510 of template F 02.02 (Statement of profit or loss) as well as in row 070 of template F16.07 (Impairment on financial and non-financial assets).

Furthermore, moving into the institutions within the CRR scope of consolidation, IFRS 10 contains one exemption for full consolidation of subsidiaries in the case of investment entities. Any impairment related to a subsidiary under this exemption should be accounted for in row 070 of template F16.07.

Lastly, investments in joint ventures which are not under the scope of CRR and associates are allowed to be recognised using the equity method, according to the IFRS. If that were the case, they can be subject of impairment and the provisions in IAS 36 apply to them. Additions and reversals to the impairment of joint ventures and associates shall thus be reported in rows 080 and 090 of template F16.07 of FINREP.

Status:
Final Q&A
Answer prepared by:
Answer prepared by the EBA.
Image CAPTCHA