Question ID
2025_7512
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Credit risk
Article
5
Paragraph
9
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Competent authority
Subject matter
Application of the SME definition in specific cases
Question

How shall the SME definition in Article 5(9) of Regulation (EU) No 575/2013 (CRR) be applied in the following cases:

1. The entity is considered both in accounts on the consolidated basis of a group and also in accounts on a “sub-consolidated” basis only considering a sub-group of this group.

2. The entity is a single entity that prepares accounts on its individual basis but is not considered in any accounts for a “consolidated situation” of a group.

Background on the question

The question is how to apply the criterion “according to its most recent consolidated accounts, has an annual turnover not exceeding EUR 50 000 000” in particular in the following cases:

1. The entity belongs to a group but also prepares accounts on a “sub-consolidated basis” for a sub-group only consisting of this entity together with some but not all other group members, e.g. where the entity is not the ultimate parent of this group and the sub-group only includes this entity together with its subsidiaries but not other group members.

2. The entity does not belong to a group and therefore does not prepare consolidated accounts. 

Submission date
Status
Question under review
Answer prepared by
Answer prepared by the EBA.