# Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance), Division 131

Extent: E+W+S+N.I.

Under IFRS, the ‘ carrying amount ’ for all derivatives (hedging or trading) shall be the fair value. Derivatives with a positive fair value (above zero) shall be ‘ financial assets ’ and derivatives with a negative fair value (below zero) shall be ‘ financial liabilities ’ . The ‘ carrying amount ’ shall be reported separately for derivatives with a positive fair value ( ‘ financial assets ’ ) and for those with a negative fair value ( ‘ financial liabilities ’ ). At the date of initial recognition, a derivative shall be classified as ‘ financial asset ’ or ‘ financial liability ’ according to its initial fair value. After initial recognition, as the fair value of a derivative increases or decreases, the terms of the exchange may become either favourable to the institution (and the derivative is classified as ‘ financial asset ’ ) or unfavourable (and the derivative is classified as ‘ financial liability ’ ). The carrying amount of hedging derivatives shall be their entire fair value, including, where applicable, the components of this fair value that are not designated as hedging instruments.

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Source: https://www.legislation.gov.uk/eur/2014/680/annex/V/part/2/division/10/division/10.2/division/131 (the official version)
Page: https://openlegislation.uk/eu-regulation-2014-680/annex-V/part-2/division-10/division-10.2/division-131
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.