Question ID
2018_4189
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - COREP (incl. IP Losses)
Article
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Annexes I and II
Type of submitter
Credit institution
Subject matter
Adjustments due to IFRS 9 transitional arrangements included in RWAs and interaction with validation rule v3689_s in template C5.01.
Question

In template C5.01 validation rule v3689_s states that R010 C040 cannot be negative, should R010 C040 be excluded from this validation rule?

Background on the question

Row 440, Column 040 asks for adjustments due to IFRS 9 transitional arrangements included in RWAs and is a negative figure. The correct logic for the template would be to also insert this figure into: a. R010 ‘TOTAL ADJUSTMENTS’ : C040 ‘Adjustments included in RWAs b. R100 ‘OTHER TRANSITIONAL ADJUSTMENTS’ : C040 ‘Adjustments included in RWAs’ The adjustments due to IFRS 9 transitional arrangements included in RWAs in Row 440 Column 040 relates to Article 7(a) and 7(b) of EU Regulation 2017/2395, adjustments to RWAs due to not taking into account the effects of credit loss provisions included in the transitional CET1 add back on deferred tax assets and specific credit risk adjustments on standardised exposures.

Submission date
Final publishing date
Final answer

Article 1.7 of Regulation (EU) 2017/2395 refers to the IFRS 9 transitional arrangements ‘by not taking into account the effects of the expected credit loss provision in CET1’. The adjustment of the RWA as reporting in column 040 of template C 05.01 of Annex I to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) is consequently necessarily a positive amount.

Hence, validation rule v3689_s is correct.

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

Disclaimer

The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.