EBA Q&A · 2015_2170
FINREP - Contents of template F 40.1 Group structure "entity-by-entity" - Col 160 "Carrying amount" should be higher than 0
Final Q&Afiled under Regulation (EU) No 530/2014 - RTS on materiality of thresholds for internal approaches to specific risk in the trading bookSubmitted 27/07/2015 · published 13/12/2019
Question · verbatim
Template F40.01 requires carrying amount higher than 0. As a principle of consolidation, enterprises over which the Group exercises significant influence (associates) are accounted for by the equity method. If the Group’BNP Paribas'share of losses of an equity-method entity equals or exceeds the carrying amount of its investment in this entity, the Group discontinues including its share of further losses. The investment is reported at nil value ans respect in this case the control in FINREP template 40.1 concerning the carrying amount. But the Group BNP Paribas consolidated also controlled but non material entities under equity method. In these cases the carrying amount is not reported at nil, due to the fact that the Group is fully involved in the entity. Is it possible to modifiy the control to authorize negative carrying amount under the condition that a comment is reported in a dedicated cell?
Background provided by the submitter · verbatim
The CSSF rejects the XBRL file relative to the FIN40.1 due to the spcificity.
Answer · verbatim
Validation rules v3976_m and v3977_m define that the reported carrying amount in templates F 40.01 and F 40.02 cannot be negative.
For associates and joint ventures IAS 28.38 states that:
“If an entity’s share of losses of an associate or a joint venture equals or exceeds its interest in the associate or joint venture, the entity discontinues recognizing its share of further losses”.
Thus, in those cases the interest in entities under the equity method cannot be negative, but is reduced to zero.
Moreover, under IAS 28.39, “After the investor or joint venturer's interest is reduced to zero, a liability is recognised only to the extent that the investor or joint venturer has incurred legal or constructive obligations or made payments on behalf of the associate.”
Consequently, validation rules v3976_m and v3977_m hold.
Source: EBA Single Rulebook Q&A 2015_2170 · text as published, not rephrased · collected on 2026-10-08