Key Features of FINREP Reporting:

1. Scope and purpose

FINREP obliges financial institutions listed on a stock exchange or preparing financial statements based on IFRS/GAAP (depending on the jurisdiction) to report comprehensive financial data. The major objectives are to give regulators a full awareness of an institution’s financial health and performance for improved supervision, and to scrutinize the financial stability of the banking system. 

2. Reporting requirements

FINREP sets out the required financial information, as well as details on balance sheet items, income, expenses, and equity. Reports are normally submitted quarterly and use standardized data formats and descriptions for consistency. 

3. FINREP templates and instructions

The framework comprises of many templates and information fields that institutions must complete. Instructions for these templates define the rules for recognition, offsetting, and valuation premised on the relevant accounting framework (IFRS or national GAAP). FINREP templates are accessed through sources, such as the European Banking Authority (EBA) website. 

4. Taxonomy and validation rules

A Data Point Model (DPM) is used to represent the data structure and validation rules for accurate and consistent reporting. This DPM generates the XBRL taxonomy for standardized data sharing. Validation rules, periodically released by the EBA, guarantee data accuracy and consistency between frameworks, namely FINREP and COREP. 

5. Key actions for FINREP reporting

Institutions are necessitated to comprehend the latest FINREP requirements, pinpoint and source the relevant data, and  well-organized reporting processes. Complying with deadlines and reconciling accounting and prudential consolidation groups are also vital steps. 

FINREP focuses on developing a consistent and transparent financial reporting environment, permitting regulators to evaluate the financial health of institutions and implement supervisory actions.