The accounting regime for Spanish credit institutions was set by the Circular 4/2004 on financial and reserved information standards, and on financial statements. This Circular follows the International Financing Reporting Standards (IFRS) adopted in the EU.
In Annex IX of the Circular 4/2004 the general credit risk management framework is developed, focusing on those aspects in relation to accounting. In particular, this Annex covers, among others, policies on concession, modification, assessment, monitoring and control of operations, including their accounting classification and estimation of allowances for credit losses.
This document prepared by the R&D area of Management Solutions analyses the new framework defined by the Circular 4/2016, specifying those new aspects compared to the existing framework. Moreover, the main implications arising from the implementation of the new framework are explained.
The Circular 4/2016 introduces amendments regarding the credit risk management framework, classification of operations, provisions for credit losses, foreclosed real estate assets and other aspects, such as intangible assets and transmission of equity instruments.
Scope of application
Download the technical note click here.
Latest technical notes released:
|Draft Law on personal data protection (APLOPD)|
|Draft Circular on public and confidential financial information standards and formats|
|EU-wide Stress Test 2018 Draft Methodology and Templates|
|Guidelines on credit institutions’ credit risk management practices and accounting for expected credit losses|
|Guidance to banks on non-performing loans (NPLs)|
© GMS Management Solutions, S.L., 2017. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.