Validation rule v3956_s requires all values presented in column 040 (Accumulated impairment) of template F 16.07 to be negative. The row labels on rows 060 and 100 state “Impairment or (-) reversal of impairment”. As a result, column 040, presented negative, appears to only allow the disclosure of accumulated net reversals of impairments. Please could we receive clarification that this validation is correct?

Validation rule v3956_s requires all values presented in column 040 (Accumulated impairment) of template 16.07 to be negative. The row labels on rows 060 and 100 state “Impairment or (-) reversal of impairment”. As a result, column 040, presented negative, appears to only allow the disclosure of accumulated net reversals of impairments.

Conventions for filling FINREP templates are established in Part 1.2 of Annex V of Commission Implementing Regulation (EU) No 680/2014 (as amended). Relevant paragraphs for sign conventions are from 8 to 11. Q&A 2015_2034 provides further guidance on how sign conventions shall be applied for accumulated impairments and movements in allowances across FINREP.
For consistency with the reporting of accumulated impairments throughout FINREP, column c040 of template F 16.07 shall be reported with a negative sign.
Column 040 of template F16.07 refers to the accumulation of impairment and consequently can only be negative, zero or nil.