Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Supervisory reporting - COREP (incl. IP Losses)
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Disclose name of institution / entity:
Type of submitter:
Competent authority
Subject Matter:
Reactivation of v0191_m as of v2.7.

Is the reactivation of v0191_m: {C 01.00, r370, c010} = {C 05.01, r170, c060} correct?

Background on the question:

According to validation rule v0191_m, which has been reactivated for v2.7, the value in row 370 in template C 01.00 (“Deferred tax assets that rely on future profitability and do not arise from temporary differences net of associated tax liabilities”) should be equal to the value in row 170 in template C.05.01. We think this rule is only relevant if the amount reported in C 01.00 is subject to transitional provisions according to Article 469 (1) of Regulation (EU) No 575/2013. However, there could be cases where the transitional period were completed in December 2017 therefore, nothing should be reported in row 170 of C.05.01.

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

According to the instructions of row 170 of template C 05.01 as laid down in Annex II of Regulation (EU) No 680/2014 as amended (ITS on Supervisory Reporting), the value reported in cell {C 05.01, r170, c060} is the amount of deferred tax assets (DTAs) that have to be deducted from Common Equity Tier 1 (CET1) according to Article 36(1)(c) of Regulation (EU) No 575/2013 as amended (CRR) without taking into account the transitional provision of Article 469(1) of the CRR.

The validation rule v0191_m checks the identity between DTAs that rely on future profitability and do not arise from temporary differences net of associated tax liabilities being reported in cell{C 01.00, r370, c010} of template C 01.00 and in cell {C 05.01, r170, c060} of template C 05.01 of Annex I of ITS on Supervisory Reporting.

According to Art. 469 (1) of the CRR, the transitional provisions for the above-mentioned DTAs’ deduction from CET1 prescribing percentages applicable to these deductions lower than 100 % were originally into force until the 31st of December 2017.

According to Article 469(1)(a) of the CRR in conjunction with Article 478 (2) and (3) lit. (a) of the CRR the expiration of this transitional period can be extended until the 31st of December 2023 (10-year phase out) for above-mentioned DTAs that existed prior to 1st of January 2014 by discretion of the competent authority.

Therefore, for some institutions the transitional period ended in December 2017 resulting in the lack of a legal basis requiring institutions to report values for row 170 of template C 05.01, whereas some competent authorities have extended the transitional period, which resulted in the ongoing requirement for affected institutions to report values for this row if they own above-mentioned DTAs that existed prior to the 1st of January 2014.

In order to account for the different use of transitional provisions for deduction of above-mentioned DTAs from CET1 the validation rule v0191_m has to be adapted to those cases where an institution does not have to report values for row 170 of the template C 05.01 any longer.

Correspondingly, the validation rule v0191_m will be amended.

Also it is clarified that cell {C 05.01, r170, c060} includes negative values only.

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