The European Banking Authority (EBA) published today its amended final draft implementing technical standards (ITS) on the reporting of financial information. The amended ITS follow the finalisation of IFRS 9 in July 2014 by the International Accounting Standards Board (IASB) and its endorsement into EU law on 22 November 2016 and aim at aligning the reporting framework with the new IFRS 9 requirements while ensuring reporting institutions have adequate implementation time.
Overview of the changes to FINREP templates
Most of the amendments to these final draft ITS reflect the changes brought about by the new IFRS 9 requirements although the EBA deemed necessary to review also some parts of the FINREP framework based on the experience gained through the submitted data and the feedback received from compiling banks. The amendments also reflect the EBA's review of templates and instructions used by institutions under the national General Accepted Accounting Principles (GAAP) so as to ensure the integrated framework for supervisory reporting of financial information is aligned.
In particular, refinements have been brought to the concepts of gross carrying amount, accumulated changes in fair value due to credit risk, non-performing and forborne exposures, the reporting of economic hedges, investments in associates, subsidiaries and joint ventures and their dividends, mortgage exposures, and the counterparty of financial assets.
Other changes resulted from specific requests received in the consultation and from issues identified via the Single Rulebook Q&A process which needed to be addressed to ensure better quality in the reporting of information.
These changes apply to both IFRS and GAAP templates.
Implementation and remittance date
The first reporting reference date will follow the first application date of the EU-endorsed IFRS 9 for each institution. If an institution has an accounting year lasting from January to December, the first application date will be 1 January 2018, with a first reference date of 31 March 2018.
These draft ITS have been developed in accordance with Article 99 of Regulation (EU) No 575/2013, which requires the EBA to develop ITS specifying supervisory reporting in the areas of own funds requirements and financial information. These final draft ITS amend and update Regulation (EU) No 680/2014.