Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Supervisory reporting - FINREP (incl. FB&NPE)
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Annex III, F46.00
Disclose name of institution / entity:
Type of submitter:
Competent authority
Subject Matter:
Reporting of transfer between capital surplus (share premium) and retained earnings in FINREP F 46 template.

Under the Hungarian legislation negative balance of retained earnings could be offset by a transfer from other elements of own funds. If such transaction occurs how should it be reported in template F46?

Background on the question:

One of the Hungarian institutions used its capital surplus to offset the negative balance of retained earnings. In our opinion, the following cells should be used to report the transaction in FINREP template F 46.00:

-         row: Transfers among components of equity (160); column: Share premium (020), and

-         row: Transfers among components of equity (160); column: Retained earnings (060).

The cell “Transfers among components of equity in retained earnings” / “Retained earnings” {r160, c060} is usable hence this leg of the transaction can be reported in the template. However the corresponding cell is inactive (grey) in case of share premium.

Date of submission:
Published as Final Q&A:
Final Answer:

Notwithstanding general principles on offsetting laid down in IAS 1, paragraphs from 32 to 35, the use of share premium to offset negative balances of retained earnings shall be recorded in the statement of changes in equity as per paragraph 106(d) of IAS 1. It shall also be reported in template F 46.00 by using row 100 –”Capital reduction”.

Accordingly, this operation shall be reported as follows:

- {F 46.00, r100, c020}: reduction in the amount of share premium; and

- {F 46.00, r100, c060}: increase in the amount of retained earnings.

Final Q&A
Answer prepared by:
Answer prepared by the EBA.