The accounting regime for Spanish credit institutions is regulated by the Circular 4/2004, of the BdE, on public and confidential financial information standards and formats. Through this Circular and its amendments, the BdE has implemented the International Financial Reporting Standards (IFRS) adopted in the EU.

IFRS 9 (Financial Instruments) and IFRS 15 (Revenue from Contracts with Customers) were adopted in the EU in 2016. These standards will be applicable to banking groups for preparing their consolidated annual accounts for the financial years starting from 1 January 2018.

In this context, following the Draft Circular published in June 2017, the BdE has published the Circular 4/2017 on public and confidential financial information standards and formats that supersedes Circular 4/2004, aimed to adapt the current accounting framework of the Spanish credit institutions to these accounting standards that modify the criteria for recognising financial instruments and revenues, respectively.

This document prepared by the R&D area of Management Solutions analyses the main amendments relating to the Proyecto de Circular (in particular regarding Anejo 9).

Executive summary

This document addresses the analysis of the main amendments regarding the Proyecto de Circular, which are structured in five axes: i) business model and SPPI test; ii) classification of transactions; iii) calculation of the impairment; iv) purchased or originated credit impaired assets; and v) other aspects.

Scope of application

The Circular 4/2017 is applicable to credit institutions listed in Law 10/2014, branches of foreign credit institutions operating in Spain, groups of credit institutions, and consolidated groups of credit institutions.

Main content

  • Business model and SPPI test
  • Classification of transactions
  • Calculation of the impairment
  • Purchased or originated credit impaired assets
  • Other aspects (e.g. accounting hedges, country risk)

Download the technical note by clicking here (only in spanish).