The amount reported under accumulated retained earnings (5.1.4.1) should be as per the audited financial statement at year end and should remain the same for the entire financial year.
13.
Current financial year’s/quarter’s profits can only be taken into account after they are properly audited/ reviewed by the external auditors of the bank. Current financial years /quarter’s loss if incurred have to be deducted from the capital.
14.
Dividend expected/ proposed for the financial year should be reported under (5.1.4.3) and will be deducted from Retained Earnings/ (Loss) (5.1.4). Expected dividend applies only for Q4 until dividend is actually paid.
15.
The dividend deduction must be updated based on each of the following events, if the amount changes, after Annual General meeting, or the approval from the Central Bank, or the release of the Financial Statements by the auditors.
16.
Other adjustments to the Retained Earnings includes:
a.
Prudential filter: Partial addback of ECL in accordance with the Regulation Regarding Accounting Provisions and Capital Requirements - Transitional Arrangements should be reported under (5.1.4.4) IFRS transitional arrangement.
b.
CBUAE Regulatory deductions:
i. Amount exceeding Large Exposure threshold: Any amount that is in violation of Large Exposure regulation of notice 300/2013 shall be deducted from the capital. Any amount deducted from CET1 under 5.1.4.5 of the BRF 95 due to a Large Exposure violation of notice no.226/2018 may be excluded for the calculation of risk weighted assets. However, amounts that are not deducted must be included in risk weighted assets. Furthermore, any counterparty credit risk (under CR2a) associated with such exposure must remain included in the calculation of risk weighted asset.