Shall the fair value treatment of trading book positions in accordance with Art 105 (1) CRR be applied for reclassified non-trading book positions pursuant to Art 104a CRR?
Non-trading book positions can be recognized as fair value and amortised costs. Under exceptional circumstances, an institution may reclassify a non-trading book positions booked under amortised costs to a trading book. A strict application of Art 105 CRR requires that the institution processes an accounting reclassification of the related position to fair value. As accounting standards, such as IFRS 18.104.22.168, does not allow under exceptional circumstances a reclassification in accounting treatment, the requirements of CRR and accounting standards interfere with each other.