Question ID
2013_121
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - FINREP (incl. FB&NPE)
Article
99
Paragraph
2
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Annex III, F 04.01, c020
Name of institution / submitter
The Danish Bankers Association
Country of incorporation / residence
Denmark
Type of submitter
Industry association
Subject matter
FINREP Amount of cumulative changes in fair value due to credit risk
Question

In the absence of accurate information how the amount of cumulative changes in fair value due to credit risk should be reported? This question is also relevant for templates F4.2, F8.1, F16.5, F45.1.

Background on the question

As mentioned in the EBA Q&A’s the requirement in IFRS to specify the credit risk component relates only to financial assets designated at FVTPL and not for trading portfolios.

Submission date
Final publishing date
Final answer

Reporting institutions should in principle be able to determine the amount of cumulative changes in fair value due to credit risk. If the information needed to its determination does not exist or is not possible to retrieve without incurring into significant costs, following the principles of IAS 8 the reporting institution shall carry out a reliable estimation of this amount. Retrospective application back to the date of initial acquisition is required where a reliable estimate for this is able to be made. If a reliable estimation is not possible, reporting institutions should apply the requirements retrospectively from the earliest period practicable.

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

Disclaimer

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