- Question ID
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2023_6849
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Accounting and auditing
- Article
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TBC
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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TBC
- Name of institution / submitter
-
Vasileios Lekkos
- Country of incorporation / residence
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United Kingdom
- Type of submitter
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Individual
- Subject matter
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Day One Profit calculations
- Question
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Can the EBA advise please:
1) If the implementation of the IFRS standard should differentiate between observable and unobservable parts of DOP and only defer the latter?
2) If such treatment would be both more accurately reflect the IFRS standard?
3) If such treatment would be materially beneficial for the EBA institutions and how exactly?
4) If above yes, will it work with IFRS to implement it? - Background on the question
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1) As of latest data, there seem to be c. 275bn L3 instruments reported by the EBA.
2) Part of these L3 instruments are fully observable and part partially observable.
3) EBA confirms that the whole Day One Profits from L3 instruments are deferred regardless is they are fully or partially observable L3 instruments.
4) Part of these L3 DOP come from observable and part from unobservable cash flows.
5) IFRS has recently decided not to split the unity of account but this seems to refer to multiple concurrent bundled cash flows from multiple instruments, rather than cash flows from different sequential periods of a single instrument. Hence, it may not refer exactly to this question.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
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This question has been rejected because it is out of scope of the Q&A process /tool and does not relate to the legislative acts referred to in Article 1(2) of the EBA Regulation and their associated delegated and implementing acts, guidelines and recommendations. The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.
Additionally, it does not fulfil the formal criteria for submission.
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- Status
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Rejected question