2018_3953 IFRS 9 Transitional arrangements – Reference date for the regulatory expected loss in Article 473a(5)(c)

Question ID:

2018_3953

Legal Act:

Regulation (EU) No 575/2013 (CRR)

Topic:

Accounting and auditing

Article:

473a

Paragraph:

Subparagraph:

COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:

Not applicable

Article/Paragraph:

n.a.

Disclose name of institution / entity:

Type of submitter:

Competent authority

Subject Matter:

IFRS 9 Transitional arrangements – Reference date for the regulatory expected loss in Article 473a(5)(c)

Question:

Which date should apply to the regulatory expected loss for the application of Article 473a(5)(c)?

Background on the question:

Pursuant to Article 473a(5) (a) and (b) the reference date is explicitly mentioned not only for the calculation of accounting provisions but also for the regulatory EL. In paragraph 5, the reference to the 01/01/2018 or date of initial application in a narrow reading only relates to the calculation of the accounting provisions and not to the regulatory EL. Which date should apply to the regulatory EL: 31/12/2017, 01/01/2018 or reporting date?

Date of submission:

01/06/2018

Published as Final Q&A:

08/06/2018

Final Answer:

~~In the absence of an explicit reference date~~ As mentioned in Article 473a(5)(c) of CRR for the calculation of the regulatory expected loss amounts (EL) in accordance with Article 158(5), (6) and (10) of that Regulation, the reference date for the calculation of the regulatory EL in Article 473(a)5(c) of CRR ~~should be~~ is 1 January 2020 or the ~~the same as the reference date for the calculation of the IFRS 9 amounts to be reduced, that is 1 January 2018 or the~~ date of initial application of IFRS 9, whichever is later. As regards point (b) of the second subparagraph of paragraph 1 of Article 473a, when not specified, the reference date for the calculation of the regulatory EL should be the same as the reference date for the calculation of the IFRS 9 amounts to be reduced.

Status:

Final Q&A

Answer prepared by:

Answer prepared by the EBA.

Note to Q&A:

~~Update 26.03.2021: This Q&A has not yet been reviewed by the EBA in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).~~

Update 28.10.2021: This Q&A has been amended in light of the change(s) in Article 473a to Regulation (EU) No 575/2013 (CRR), applicable from 27.06.2020.