BDE Publishes Circular on Accounting Regime of Credit Institutions
BDE issued Circular 4/2019 to credit institutions on rules of public and reserved financial information and on models of financial statements. This new circular, which constitutes the development of the Commercial Code for these establishments, maintains the convergence of the national accounting regulations with the International Financial Reporting Standards adopted by EU (IFRS-EU), in accordance with the provisions of the Regulation (EC) No 1606/2002 on the application of international accounting standards (IAS Regulation). In this way, BDE continues the strategy of compatibility of the accounting regime of the supervised entities with the most advanced accounting criteria of the IFRS-EU, respecting the principles of the Commercial Code. In particular, the criteria of IFRS-EU 9, on financial instruments, are incorporated into the accounting regulations of the establishments. This circular entered into force on January 01, 2020.
This circular, which constitutes the accounting regime of financial credit establishments, determines the documents that these establishments and their groups have to publish. This circular consists of fifteen standards, an additional provision, three transitional provisions, and a final provision. The key topics covered in the circular are related to public financial information, reserved financial information, internal accounting development and management control, and presentation of financial information at BDE. In accordance with Title II of Law 5/2015 on the promotion of business financing, this circular takes as reference the accounting regulations of credit institutions, either by setting similar criteria, or by referring directly to the rules of Circular 4/2017 on standards of public and reserved financial information and models of financial statements. The differences in the nature, scale, and complexity of the activities of the establishments with respect to credit institutions translate into a simplified regime of financial statement requirements, consisting of a subset of the public and reserved financial statements of credit institutions, with, in some cases, a lower shipping frequency or a longer maximum period of remission.
Related Link (in Spanish): Circular 4/2019
Effective Date: January 01, 2020
Keywords: Europe, EU, Spain, Banking, Accounting, IFRS-EU, Circular 4/2019, Financial Instruments, IFRS 9, BDE
Featured Experts
Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Anna Krayn
CECL adoption expert; engagement manager for loss estimation, internal risk capability enhancement, and counterparty credit risk management
Masha Muzyka
CECL, IFRS 9, and IFRS 17 expert; credit risk and insurance risk specialist; strategic planning and credit analytics solutions consultant
Related Articles
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
APRA Finalizes Guidance for New Prudential Standard on Remuneration
The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.
OCC Updated LIBOR Self-Assessment Tool for Banks
The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).
TCFD Updates Guidance for Financial Disclosures on Climate Risk
The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
BCBS Report Examines Progress on Adoption of Basel III Framework
The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.
ACPR Implements Updates Related to DPM Version 3.1
The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.
EBA Note Examines Transition Risks of Benchmark Rates
The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.
