Article 39 2

(i)

the traceability of non-trading book positions incorporated in the scope of the alternative internal model approach, and the correctness of the accounting values or fair values used as a basis to calculate the own funds requirements for market risk, as required by Articles 3 and 4 of Delegated Regulation (EU) 2023/1577;

(ii)

that non-trading book positions attracting foreign exchange risk or commodity risk booked on a given date are included in the calculation of the expected shortfall risk measure referred to in Article 325bb of Regulation (EU) No 575/2013 or the stress scenario risk measure referred to in Article 325bk of that Regulation;

(iii)

that any foreign exchange risk positions stemming from a change in the reporting currency at the different levels of consolidation (‘translation risk’) are included in the scope of positions subject to foreign exchange risk;

(iv)

a correct identification of foreign-exchange positions meeting the conditions for using the treatment referred to in Article 3(4) and Article 5(1), second subparagraph, of Delegated Regulation (EU) 2023/1577, where the institution uses that treatment;

(v)

a correct and complete identification of items meeting the conditions set out in Article 3(6) of Delegated Regulation (EU) 2023/1577;

(i)

foreign exchange positions for which the institution uses the derogation laid down in Article 3(4) and Article 5(1), second subparagraph, of Delegated Regulation (EU) 2023/1577 are distinguished from foreign exchange positions for which the institution does not use that derogation;

(ii)

only foreign-exchange risk factors of the last available accounting value or fair value are updated to determine the value of the position before the application of the scenario of future shock, unless the treatment referred to in Article 3(4) of that Regulation is used, as required by Article 3(3) of Delegated Regulation (EU) 2023/1577;

(iii)

for positions for which the treatment in Article 5(1), second subparagraph of that Regulation is used, all risk factors are updated to determine the value of the position before the application of the scenario of future shock, as required by Article 3(4) of Delegated Regulation (EU) 2023/1577;

(i)

the criteria established by the institution to identify events triggering an impairment are appropriate, based on historical data and historical events;

(ii)

the criteria referred to in point (i) are consistent with the internal risk-management of impairment risk;

(iii)

the level of impairment recognised following the events referred to in point (i) is based on objective reasoning;