Commission Implementing Regulation (EU) No 680/2014Show full title

[F1 1. BALANCE SHEET U.K.

1.1. Assets (1.1) U.K.

1. ‘ Cash on hand ’ shall include holdings of national and foreign banknotes and coins in circulation that are commonly used to make payments. U.K.

2. ‘ Cash balances at central banks ’ shall include balances receivable on demand at central banks. U.K.

3. ‘ Other demand deposits ’ shall include balances receivable on demand with credit institutions. U.K.

4. ‘ Investments in subsidiaries, joint ventures and associates ’ shall include the investments in associates, joint ventures and subsidiaries which are not fully or proportionally consolidated under the regulatory scope of consolidation, except where they shall be classified as held for sale in accordance with IFRS 5, irrespective of how they are measured, including where the accounting standards allow for them to be included in the different accounting portfolios used for financial instruments. The carrying amount of investments accounted for using the equity method shall include related goodwill. U.K.

5. Assets that are not financial assets and that due to their nature could not be classified in specific balance sheet items shall be reported in ‘ Other assets ’ . Other assets shall include, among others, gold, silver and other commodities, even where they are held with trading intent. U.K.

6. Under the relevant national GAAP based on BAD, the carrying amount of repurchased own shares shall be reported as ‘ other assets ’ where presentation as asset is allowed under the relevant national GAAP. U.K.

7. ‘ Non-current assets and disposal groups classified as held for sale ’ shall have the same meaning as under IFRS 5. U.K.

1.2. Liabilities (1.2) U.K.

8. Under national GAAP based on BAD, provisions for contingent losses arising from the ineffective part of portfolio hedge relationship shall be reported in row ‘ Derivatives – Hedge accounting ’ where the loss arises from the valuation of the hedging derivative, or in row ‘ Fair value changes of the hedged items in portfolio hedge of interest rate risk ’ where the loss arises from the valuation of the hedged position. Where no distinction between losses arising from the valuation of the hedging derivative and loss arising from the valuation of the hedged position is possible, all provisions for contingent losses arising from the ineffective part of the portfolio hedge relationship shall be reported in row ‘ Derivatives – Hedge accounting ’ . U.K.

9. Provisions for ‘ Pensions and other post-employment defined benefit obligations ’ shall include the amount of net defined benefit liabilities. U.K.

10. Under IFRS, provisions for ‘ Other long-term employee benefits ’ shall include the amount of the deficits in the long-term employment benefit plans listed in IAS 19.153. The accrued expense from short-term employee benefits (IAS 19.11(a)), defined contribution plans (IAS 19.51(a)) and termination benefits (IAS 19.169(a)) shall be included in ‘ Other liabilities ’ . U.K.

11. Under IFRS, provisions for ‘ Commitments and guarantees given ’ shall include provisions related to all commitments and guarantees, irrespective of whether their impairment is determined in accordance with IFRS 9 or their provisioning follows IAS 37 or whether they are treated as insurance contracts under IFRS 4. Liabilities arising from commitments and financial guarantees measured at fair value through profit or loss shall not be reported as provisions although they are due to credit risk, but as ‘ other financial liabilities ’ in accordance with paragraph 40 of Part 1 of this Annex. Under national GAAP based on BAD, provisions for ‘ Commitments and guarantees given ’ shall include provisions related to all commitments and guarantees. U.K.

12. ‘ Share capital repayable on demand ’ shall include the capital instruments issued by the institution that do not meet the criteria to be classified in equity. Institutions shall include in this item the cooperative shares that do not meet the criteria to be classified in equity. U.K.

13. Liabilities that are not financial liabilities and that due to their nature could not be classified in specific balance sheet items shall be reported in ‘ Other liabilities ’ . U.K.

14. ‘ Liabilities included in disposal groups classified as held for sale ’ shall have the same meaning as under IFRS 5. U.K.

15. Under national GAAP based on BAD ‘ Funds for general banking risks ’ are amounts that have been assigned in accordance with Article 38 of BAD. Where recognised, they shall appear separately either as liabilities under ‘ provisions ’ or within equity under ‘ other reserves ’ in accordance with the relevant national GAAP. U.K.

1.3. Equity (1.3) U.K.

16. Under IFRS, equity instruments that are financial instruments shall include those contracts under the scope of IAS 32. U.K.

17. Under the relevant national GAAP based on BAD, ‘ Unpaid capital which has been called up ’ shall include the carrying amount of capital issued by the institution that has been called-up to the subscribers but not paid at the reference date. If capital increase, not yet paid, is recorded as an increase of share capital, unpaid capital which has been called up shall be reported in ‘ Unpaid capital which has been called up ’ in template 1.3 as well as in ‘ other assets ’ in template 1.1. Under the relevant national GAAP based on BAD, where capital increase can be recorded only following the receipt of the payment from shareholders, unpaid capital shall not be reported in template 1.3. U.K.

18. ‘ Equity component of compound financial instruments ’ shall include the equity component of compound financial instruments (that is, financial instruments that contain both a liability and an equity component) issued by the institution, where segregated in accordance with the relevant accounting framework (including compound financial instruments with multiple embedded derivatives the values of which are interdependent). U.K.

19. ‘ Other equity instruments issued ’ shall include equity instruments that are financial instruments other than ‘ Capital ’ and ‘ Equity component of compound financial instruments ’ . U.K.

20. ‘ Other equity ’ shall comprise all equity instruments that are not financial instruments including, among others, equity-settled share-based payment transactions (IFRS 2.10). U.K.

21. ‘ Fair value changes of equity instruments measured at fair value through other comprehensive income ’ shall include accumulated gains and losses due to changes in fair value on investments in equity instruments for which the reporting entity has made the irrevocable election to present changes in fair value in other comprehensive income. U.K.

22. ‘ Hedge ineffectiveness of fair value hedges for equity instruments measured at fair value through other comprehensive income ’ shall comprise the accumulated hedge ineffectiveness arising in fair value hedges in which the hedged item is an equity instrument measured at fair value through other comprehensive income. Hedge ineffectiveness reported in this row shall be the difference between the accumulated variation of the fair value of the equity instrument reported in ‘ Fair value changes of equity instruments measured at fair value through other comprehensive income (hedged item) ’ and the accumulated variations of the fair value of the hedging derivative reported in ‘ Fair value changes of equity instruments measured at fair value through other comprehensive income (hedging instrument) ’ (IFRS 9.6.5.3 and IFRS 9.6.5.8). U.K.

23. ‘ Fair value changes of financial liabilities at fair value through profit or loss attributable to changes in the credit risk ’ shall include accumulated gains and losses recognised in other comprehensive income and related to own credit risk for liabilities designated at fair value through profit or loss, regardless of whether the designation takes place at initial recognition or subsequently. U.K.

24. ‘ Hedge of net investments in foreign operations (effective portion) ’ shall include the foreign currency translation reserve for the effective portion of both on-going hedges of net investments in foreign operations and hedges of net investments in foreign operations that no longer apply while the foreign operations remain recognised in the balance sheet. U.K.

25. ‘ Hedging derivatives. Cash flow hedges reserve (effective portion) ’ shall include the cash flow hedge reserve for the effective portion of the variation in fair value of hedging derivatives in a cash flow hedge, both for on-going cash flow hedges and cash flow hedges that no longer apply. U.K.

26. ‘ Fair value changes of debt instruments measured at fair value through other comprehensive income ’ shall include accumulated gains or losses on debt instruments measured at fair value through other comprehensive income, net of the loss allowance that is measured at the reporting date in accordance with IFRS 9.5.5. U.K.

27. ‘ Hedging instruments (not designated elements) ’ shall include the accumulated changes in fair value of all of the following: U.K.

(a)

the time value of an option where the changes in the time value and the intrinsic value of that option are separated and only the change in the intrinsic value is designated as a hedging instrument (IFRS 9.6.5.15);

(b)

the forward element of a forward contract where the forward element and the spot element of that forward contract are separated and only the change in the spot element of the forward contract is designated as hedging instrument;

(c)

the foreign currency basis spread from a financial instrument where this spread is excluded from the designation of that financial instrument as the hedging instrument (IFRS 9.6.5.15, IFRS 9.6.5.16).

28. Under IFRS, ‘ Revaluation reserves ’ shall include the amount of reserves resulting from first-time adoption to IAS that have not been released to other type of reserves. U.K.

29. ‘ Other reserves ’ shall be split between ‘ Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method ’ and ‘ Other ’ . ‘ Reserves or accumulated losses of investments in subsidiaries, joint ventures and associates accounted for using the equity method ’ shall include the accumulated amount of income and expenses generated by the aforementioned investments through profit or loss in past years where they are accounted for using the equity method. ‘ Other ’ shall include reserves different from those separately disclosed in other items and may include legal reserve and statutory reserve. U.K.

30. ‘ Treasury shares ’ shall cover all financial instruments that have the characteristics of own equity instruments which have been reacquired by the institution while they are not sold or amortised, except where under the relevant national GAAP based on BAD they shall be reported in ‘ other assets ’ .] U.K.

Textual Amendments

F1 Substituted by Commission Implementing Regulation (EU) 2020/429 of 14 February 2020 amending Implementing Regulation (EU) No 680/2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance).