Annex V · Part 1 › 4 Accounting portfolios of financial instruments › 4.2 Financial liabilities
4.2 Financial liabilities
4 paragraphs · official text, verbatim
The following accounting portfolios based on IFRS shall be used for financial liabilities:
(a) ‘Financial liabilities held for trading’;
(b) ‘Financial liabilities designated at fair value through profit or loss’;
(c) ‘Financial liabilities measured at amortised cost’.
The following accounting portfolios based on national GAAP shall be used for financial liabilities:
(a) ‘Trading financial liabilities’;
(b) ‘Non-trading non-derivative financial liabilities measured at a cost-based method’.
‘Trading financial liabilities’ includes all financial liabilities classified as trading under the relevant national GAAP based on BAD. Irrespective of the measurement methodology applied under the relevant national GAAP based on BAD, all derivatives with a negative balance for the reporting institution that are not classified as hedge accounting in accordance with paragraph 26 of this Part shall be reported as trading financial liabilities. That classification shall also apply to derivatives which according to national GAAP based on BAD are not recognised on the balance-sheet, or have only the changes in their fair value recognised on-balance sheet or which are used as economic hedges as defined in paragraph 137 of Part 2 of this Annex.
‘Derivatives - Hedge accounting’ shall include derivatives with a negative balance for the reporting institution held for hedge accounting under IFRS. Under national GAAP based on BAD, banking book derivatives shall be classified as hedge accounting only if there are special accounting rules for banking book derivatives under the relevant national GAAP based on BAD and the derivatives reduce risk of another position in the banking book.