Annex V · Part 2 › 15 Breakdown of selected statement of profit or loss items (16) › 15.1 Interest income and expenses by instrument and counterparty sector (16.1)
15.1 Interest income and expenses by instrument and counterparty sector (16.1)
10 paragraphs · official text, verbatim
Interest income shall be broken down in accordance with both of the following:
(a) interest income on financial assets included in the accounting portfolios and other assets (including cash, cash balances at central banks and other demand deposits);
(b) interest income on financial liabilities with negative effective interest rate.
Interest expenses shall be broken down in accordance with both of the following:
(a) interest expenses on financial liabilities included in the accounting portfolios and other liabilities;
(b) interest expenses on financial assets with negative effective interest rate.
Interest income on financial assets and on financial liabilities with a negative effective interest rate shall include interest income on derivatives held for trading, debt securities, and loans and advances, as well as on deposits, debt securities issued and other financial liabilities with a negative effective interest rate.
Interest expenses on financial liabilities and on financial assets with a negative effective interest rate shall include interest expenses on derivatives held for trading, deposits, debt securities issued and other financial liabilities, as well as on debt securities and loans and advances with a negative effective interest rate.
For the purpose of template 16.1, short positions shall be considered within other financial liabilities. All instruments in the various portfolios shall be taken into account except those included in the items ‘Derivatives - Hedge accounting’ not used to hedge interest rate risk.
‘Derivatives - Hedge accounting, interest rate risk’ shall include the interest income and expenses on hedging instruments where the hedged items generate interest.
Where the clean price is used, interest on derivatives held for trading shall include the amounts related to those derivatives held for trading which qualify as ‘economic hedges’ that are included as interest income or expenses to correct the income and expense of the hedged financial instruments from an economic but not accounting point of view. In such case, interest income on economic hedge derivatives shall be reported separately within interest income from trading derivatives. Time-apportioned fees or balancing payments in relation to credit derivatives measured at fair value and used to manage the credit risk of part or all of a financial instrument that is designated at fair value at that occasion shall also be reported within interest on derivatives held for trading.
Under IFRS, ‘Of which: interest-income on impaired financial assets’ means interest income on credit-impaired financial assets, including purchased or originated credit-impaired financial assets where the latter are considered as non-performing in accordance with paragraph 215 of this Part. Under national GAAP under BAD, it shall include interest income on assets impaired with a specific impairment allowance for credit risk.
‘Of which: credit for consumption’ and ‘of which: lending for house purchase’ shall reflect the income and expenses on loans and advances as described in paragraph 88of this Part.
‘Of which: interest from leases’ shall reflect the lessor’s interest income on the lease receivable (finance leases) and the lessee’s interest expenses on the lease liability respectively.