Regulatory Alerts2014-01-31
Circular 1/2014 of the Bank of Spain modifying Circular 4/2004 on financial information standards and financial statement models
The Bank of Spain issued Circular 1/2014 to implement Law 8/2012 by defining how credit institutions must allocate remaining coverage balances for Spanish real estate financing risks classified as normal as of December 31, 2011. The regulation mandates that these balances be assigned to assets showing evidence of impairment, specifically doubtful financial assets and non-traded equity instruments linked to real estate, while requiring detailed reporting to the Bank before February 28, 2014. Additionally, the circular abolishes two reserved financial statements and modifies others to align with these new accounting and reporting requirements.
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