Regulatory Alerts2020-12-04
Bank of Spain Circular 5/2020 on Financial Reporting Standards and Statement Models for Payment and Electronic Money Institutions, Amending Circulars 6/2001 and 4/2017
The Bank of Spain issued Circular 5/2020 to establish a simplified accounting and financial reporting regime for payment institutions and electronic money institutions, aligning their public and reserved financial statement requirements with those of credit institutions while adapting them to the lower scale and complexity of their activities. The circular mandates specific recognition, measurement, presentation, and disclosure criteria for annual accounts and financial statements, introduces dedicated note disclosures for payment and electronic money activities, and amends Circulars 6/2001 and 4/2017 to update foreign exchange reporting and credit institution accounting standards. It enters into force on 1 January 2021, with transitional provisions allowing retroactive or simplified first-time application of new accounting rules and permitting certain group entities to rely on prior transition data.