Regulatory Alerts2015-01-09
Added · Updated
CSSF Regulation No 14-02 on Determination of Distributable Results and Reserves for Credit Institutions Using Fair Value
Credit institutions established under Luxembourg law must recognize deferred tax liabilities in the balance sheet when applying fair value measurement, provided the related gain is taxable upon realization. These institutions are prohibited from distributing or using for other purposes unrealized revenue, gains, or positive equity changes, which must instead be allocated to an unavailable reserve. Exceptions permit the distribution of unrealized gains on trading book items, exchange rate changes, and fair value hedges, as well as specific reversals of provisions upon first-time adoption of IFRS. The regulation applies to financial years ending on or after 31 December 2014.
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