Part Three, Title II, Chapter 2, Section 2 of Regulation (EU) No 575/2013 as amended by Regulation (EU) 2019/876 (CRR2), and specifically Article 132a thereof, refers to the look-through approach for exposures in a CIU. According to 132a (1), institutions can look through exposures in a CIU to calculate the risk-weighted exposure amount by risk weighting all the underlying exposures as if they were directly held by those institutions. Accordingly, in case the underlying exposure in a CIU is a derivative, methods laid down in Chapter 6 shall be used for calculating the risk-weighted exposure amount for derivative exposures in a CIU. When the look-through approach is applied for calculating own funds requirement for exposures in a CIU, the CRR2 does not give clear instructions on how the derivative exposures in a CIU should be reported in COREP templates. Since derivative contracts in CIUs do not give rise to direct counterparty credit risk exposure, reporting derivatives in a CIU in row 0110 of template C07.00 and in accordance with the validation rule v09813_m C07.00.b, C34.02 would extend the purpose of the article 132a (1) of CRR2. To the best of our understanding, reporting requirement for counterparty credit risk is not limited to C34.02 for derivative contracts. Reporting derivatives in a CIU as counterparty credit risk in COREP would require institutions to collect additional information on derivative contracts in CIUs not necessary for calculating exposure value. Therefore, it can become unduly burdensome for institutions to report such information on derivatives in CIUs. In addition, the information will be misleading, especially in case the institution has not directly entered into derivative contracts. It is unclear whether institutions using the look-through approach are allowed to report their exposures in a CIU as either on- or off-balance sheet exposure subject to credit risk in rows 0070 – 0080 of template C 07.00 for derivative exposures in a CIU.