F40.1 “Group structure: "entity-by-entity"” requires, among others, the disclosure of the “Accumulated equity interest [%]” (column 0110) and “Voting rights [%]” (column 0120). 

Annex V to FINREP describes these two data points as “the percentage of ownership instruments held by the institution as of the reference date” (Paragraph 296 (k) and respectively “the percentage of voting rights associated to the ownership instruments held by the institution as of the reference date” (Paragraph 296 (l)). 

By way of example, the parent entity P holds an interest of 80% in its subsidiary S1, which in turn holds an interest of 60% in its subsidiary S2, resulting in an indirect interest of 48% for P in S2; these percentages reflect both the accumulated equity interest and the voting rights.

When applying these definitions to a subsidiary S2 controlled indirectly through another subsidiary S1, it is not explicitly defined whether the direct percentage attributable to S1 as direct parent of S2, or the indirect percentage attributable to P as the group parent, should be reported. 

At the same time, it is acknowledged that, in such cases, the consolidation accounting requirements of IFRS10 applicable to the parent entity P provide for the use of the combined indirect percentage to measure both the P’s share and respectively non-controlling interest in S2’s equity consolidated within the P Group.