This chapter describes requirements for banks to disclose reconciliations between elements of the calculation of regulatory capital to audited financial statements.

Version effective as of 15 Dec 2019

First version in the format of the consolidated framework.

Introduction

30.1 The disclosure requirements set out in this chapter are:

(1) Table LIA - Explanations of differences between accounting and regulatory exposure amounts

(2) Template LI1 - Differences between accounting and regulatory scopes of consolidation and mapping of financial statement categories with regulatory risk categories

(3) Template LI2 - Main sources of differences between regulatory exposure amounts and carrying values in financial statements

(4) Template PV1 - Prudent valuation adjustments (PVAs)

30.2 Table LIA provides qualitative explanations on the differences observed between accounting carrying value (as defined in Template LI1) and amounts considered for regulatory purposes (as defined in Template LI2) under each framework.

30.3 Template LI1 provides information on how the amounts reported in banks’ financial statements correspond to regulatory risk categories. Template LI2 provides information on the main sources of differences (other than due to different scopes of consolidation which are shown in Template LI1) between the financial statements’ carrying value amounts and the exposure amounts used for regulatory purposes.