Article 3 Meaning of ‘Foreseeable’ in Foreseeable Charge for the Purposes of Article 26(2)(B) of the CRR
1.
The amount of foreseeable charges to be taken into account shall comprise the following:
- (a) the amount of taxes;
- (b) the amount of any obligations or circumstances arising during the related reporting period which are likely to reduce the profits of the institution and for which the PRA is not satisfied that all necessary value adjustments, such as additional value adjustments according to Article 34 of the CRR or provisions have been made.
- 01/01/2023
2.
Foreseeable charges that have not already been taken into account in the profit and loss account shall be assigned to the interim period during which they have incurred so that each interim period bears a reasonable amount of these charges. Material or non-recurrent events shall be considered in full and without delay in the interim period during which they arise.
- 01/01/2023
3.
All necessary deductions to the interim or year-end profits and all those related to foreseeable charges shall be made, either under the applicable accounting framework or under any other adjustments, before including the interim or year-end profits in Common Equity Tier 1 items.
[Note: This rule corresponds to Article 3 of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]
- 01/01/2023