Taxonomy 2.7 Republished

The EBA has republished taxonomy 2.7 which is to be effective from report reference date 31^st March 2018. It appears that due to errors in the original version, a revised one was felt necessary. Whistlebrook will review the changes and ensure they are included in a software release planned for early in 2018.

The article from the EBA can be found in http://www.eba.europa.eu/-/eba-republishes-dpm-and-xbrl-taxonomy-2-7-for-remittance-of-supervisory-reporting

Key Changes from Taxonomy 2.7

COREP C33 – Sovereign Exposures

A new form is being introduced and requires firms that have sovereign exposures of at least 1% of the total of loans plus debt securities, to submit a return. Submissions are required at an individual entity level and semi-annually.

COREP C17.01 and 17.02 – Operational Risk

C17 is being replaced by 17.01 and 17.02 in order that gross losses, recoveries and the largest loss events in the year, can be collected. Whistlebrook understands that institutions using the Basic Indicator Approach to Operational Risk will not be required to complete these forms if none of the specified criteria is met. Further details are in http://www.eba.europa.eu/documents/10180/1658500/EBA-CP-2016-20+%28CP+on+amending+ITS+on+Reporting%29.pdf

ALMM C66 – Maturity Ladder

This form (amended) is being reintroduced.

FINREP

In recognition of the introduction of IFRS 9 in 2018, the EBA is making a lot of changes to the form layouts. Whistlebrook recognises that some firms have an accounting year that is not aligned with the calendar one. Therefore there was concern that some institutions would need to report using the old forms, whilst others submit with the new ones. Gabriel Queries has provided the following reassurance,

“The EBA has remodelled the 2.7 templates to retain tables and rules from 2.6. and therefore enable firms, where necessary, to report as if they were still reporting against 2.6 (albeit that they would have to include the new 2.7 entry point in their file(s)”

Wires will have the revised layouts as specified by the regulator. 

Dynamic Hedging

The International Financial Reporting Standards Board advised that it is to pull together a project plan in 2018. This plan is aimed to deliver changes to the accounting treatment of macro ‘dynamic’ fair value hedging associated with interest rate risk. Whistlebrook understands that this type of hedging is applicable under IAS39. Changes that will arise from the IFRSB’s plan are aimed to deliver simpler interpretation of financial statements.