Annex V · Part 2 › 15 Breakdown of selected statement of profit or loss items (16) › 15.9 Other Administrative Expenses (16.8)
15.9 Other Administrative Expenses (16.8)
10 paragraphs · official text, verbatim
‘Information Technology expenses’ shall be the expenses made to deliver IT-enabled business processes, application services and infrastructure solutions for business outcomes, including costs related to the creation and maintenance of IT systems and excluding compensation for IT specialists on the institution’s payroll which shall be reported under staff expenses.
Among the Information Technology expenses, ‘IT outsourcing’ shall mean IT expenses related to the use of external service providers. It shall not include expenses related to (i) pure staff services (agency staff) to the extent that the institution just hires staff temporarily and keeps full control of the delivered services and (ii) purely standardised operational hardware/software maintenance contracts on merely purchased assets.
‘Taxes and duties (other)’shall include taxes and duties other than (i) taxes related to profit or loss taxes and (ii) taxes and duties from discontinued operations. This item includes taxes and duties such as taxes levied on goods and services and the duties paid by the institution.
‘Consulting and professional services’ shall mean expenses made to get expert or strategic advice.
‘Advertising, marketing and communication’ shall include expenses related to marketing communications activities such as advertising, direct or online marketing, and events.
‘Expenses related to credit risk’ shall mean administrative expenses in the context of credit events, such as expenses incurred in respect of taking possession of collateral or legal proceedings.
‘Litigation expenses not covered by provisions’ shall mean litigation expenses not related to credit risk that were not covered by an associated provision.
‘Real estate expenses’ shall mean expenses for repairs and maintenance that do not improve the use or prolong the useful life of the real estate, as well as utility expenses (water, electricity and heating).
Under IFRS, ‘leasing expenses’ shall comprise expenses of the lessee due to short-term leases and leases of assets of low value as referred to IFRS 16.5 and 16.6. Under national GAAP, leasing expenses shall comprise expenses of the lessee, where the accounting standard envisages the treatment of lease payments as expenses.
‘Other administrative expenses - Rest’ shall include all the remaining components of ‘other administrative expenses’, such as supervisory fees or bank levies, administrative and logistic services, postage and transport of documents, surveillance and security services, money counting services and transport. Cash contributions to resolution funds and deposit guarantee schemes shall not be reported in this category since they are reported in a separate row of template 2.