FAQ regarding CSSF Regulation No 14-02 – Determination of distributable amounts of credit institutions using fair value in the statutory accounts is a CSSF FAQ, published 24 September 2024.
\nLegal basis: Law of 23 December 1998 creating the CSSF, Law of 17 June 1992 on the accounts of credit institutions, Law of 5 April 1993 on the financial sector.
\nRelevant for: Credit institutions.
\nKeywords: Accounting, IFRS.
\nCSSF Regulation N° 14-02 relating to the determination of distributable results and reserves of credit institutions applying the fair value measurement in the statutory accounts (Mémorial A - No 4 of 9 January 2015) The Executive Board of the Commission de Surveillance du Secteur Financier, Having regard to Article 108a of the Constitution; Having regard to the Law of 23 December 1998 establishing a financial sector supervisory commission (\"Commission de surveillance du secteur financier\") and in particular Articles 2(5) and 9(2) thereof; Having regard to the Law of 17 June 1992 relating to the annual and consolidated accounts of credit institutions governed by the laws of Luxembourg and the obligations regarding publication of the accounting documents of branches of credit institutions and financial institutions governed by foreign laws, and in particular Articles 64a to 64e (Chapter 7a of Part II) and 76a (Part IIa) thereof; Having regard to the Law of 5 April 1993 on the financial sector, and in particular Articles 1(12) and 12 thereof; Having regard to the opinion of the Consultative Committee for the Prudential Regulation; Decides: Part I Scope Article 1 Scope This Regulation shall apply to all credit institutions established under Luxembourg law as defined in the law of 5 April 1993 on the financial sector.
\nPart II Limitation of the ability of credit institutions to distribute unrealised results and reserves Article 2 Credit institutions choosing to apply Chapter 7a of Part II of the law of 17 June 1992 (use of the fair value option in the statutory accounts) (1) When applying the fair value measurement in accordance with Chapter 7a of Part II of the law of 17 June 1992, deferred tax liabilities shall be recognised in the balance sheet, provided that the gain related to the increase in the fair value of an eligible asset or liability is taxable when realised. The notes to the accounts shall include the cumulative amount of deferred tax liabilities; this amount may also be shown on the face of the balance sheet as a cumulative amount under a separate item in an appropriate heading. (2) When applying the fair value measurement in accordance with Chapter 7a of Part II of the law of 17 June 1992, the provisions of Article 3 of this Regulation shall apply. Article 3 Credit institutions choosing to apply Part IIa of the law of 17 June 1992 (use of the international accounting standards IAS/IFRS in the statutory accounts) (1) Credit institutions applying Part IIa of the law of 17 June 1992 may not distribute or use for another purpose: a) unrealised revenue and gains, net of related tax, recognised in the profit and loss account; b) unrealised revenue and gains, net of related tax, recognised in equity without affecting the profit and loss account; c) positive changes in equity, net of related tax, recorded in the opening balance sheet of the first annual accounts drawn up in accordance with Part IIa or upon the firsttime adoption of a standard to an asset or liability category or item or to a defined equity instrument. (2) The items specified in paragraph (1) above shall be allocated to an unavailable reserve either directly upon their recognition or indirectly upon the appropriation of the results of the financial year.
\nThe text above is the opening of the document; the PDF carries the whole.
\nDocument page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.
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