Regulatory Alerts2018-12-21
Circular 2/2018 of the Bank of Spain, of December 21, amending Circular 4/2017 on financial information standards and Circular 1/2013 on the Risk Information Central
The Bank of Spain issued Circular 2/2018 to align Spanish credit institutions' accounting standards with IFRS 16 on leases and to make minor clarifications to the Risk Information Central (CIR) regulations. The circular mandates that lessees recognize lease assets and liabilities on the balance sheet, introduces specific accounting treatments for lease modifications and sale-and-leaseback transactions, and updates financial reporting models and frequencies. These changes, effective January 1, 2019, ensure consistency between national commercial code requirements and European IFRS-UE principles while simplifying certain reporting obligations.
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