QA2018-18 - Own Funds T01.00

Owned by SRB Services
Feb 01, 2024
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QA2018-18

Question


“Regarding the latter distinction, the carrying amount should be understood as the face value of the instruments, whereas the outstanding amount represents the residual claim of shares, i.e. including the reserves of the entity/group”. We understand the carrying amount being the “paid up capital instruments” COREP CA1-r040. This is also presented in tab T04.00 securities with the original amount issued and outstanding principal amount. It is not fully clear to us, which positions you want to see as “outstanding amount”. Could you define “reserves” in more detail? Do you expect position “capital instruments eligible as CET1 Capital, including capital reserves only (CA1-r030), or should we include retained earnings (CA1-r130), or even more (e.g. comprehensive income, other reserves, funds for general banking risk et. CA1-r180/r200/r210….).


Response


As the amount should reflect the residual claim of shareholders, the value should be based on the accounting total equity of the entity/consolidation.