With respect to remeasurement gains (losses) on defined benefit plans, IAS 19, par 120 (c) together with par 122 stipulate that these are to be reported as part of Other comprehensive income and shall not be reclassified to profit or loss. Par. 122 further allows that these remeasurement gains (losses) can be transferred within equity. Based on these rules, remeasurement gains (losses) on defined benefit plans are recorded as part of Other comprehensive income and as part of Retained earnings in our financial statements under IFRS. Hence these effects are reported in table 46.00 in row 200, column 060 as well as in table 03.00 in row 060 (pre-tax) and 090 (related taxes), column 010 in our Finrep submission.
Validation rule v1384_m (F 46.00, r200, c050 + c100 = F 03.00 r360,c010) however doesn’t take up this entry made in table 46.00 for remeasurement gains (losses), which are recorded as part of Retained earnings, leading to a validation error.
In our view, the validation rule should be amended to also consider template F 46.00, row 200, column 060, so that remeasurement gains (losses on defined benefit plans could be reported in the Finrep submission accordingly as allowed by IAS 19.
Validation rule v1384_m
Re-measurement gains / losses on defined benefit plans are recognised in other comprehensive income in accordance with IAS 19.120 and, in a first step, shall therefore be reported in row 200 (Total comprehensive income for the year) of template F 46.00 of Annexes III and IV to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting).
If those gains / losses are transferred within equity as permitted by IAS 19.122, in a second step, those transfers shall be reported in row 160 (transfers among components of equity). An amount transferred to retained earnings shall be reported as follows:
(i) with negative sign (-) in row 160, column 050 and simultaneously
(ii) with positive sign (+) in row 160, column 060.
Against this background, validation rule v1384_m is correct.
Columns 060, 070, 075 and 080 of row 200 of template F 46.00 will be greyed-out in a future version of the ITS on Supervisory Reporting.