Question ID:
2022_6458
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Accounting and auditing
Article:
105
Paragraph:
1
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Article/Paragraph:
-
Disclose name of institution / entity:
No
Type of submitter:
Individual
Subject Matter:
Reclassified non-trading book positions and the fair valued treatment in accordance to Art 105 (1) CRR
Question:

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?

Background on the question:

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 9.4.4.1, does not allow under exceptional circumstances a reclassification in accounting treatment, the requirements of CRR and accounting standards interfere with each other.

Date of submission:
20/05/2022
Published as Rejected Q&A
26/07/2022
Rationale for rejection:
Status:
Rejected question
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