Concepts and definitions

Accrued expenses and deferred income

Accrued interest and other expenses as well as deferred interest and other income, adjusted or supplemented on an accrual basis.

Accrued income and prepayments

Accrued interest and other income as well as prepaid interest and other expenses, adjusted or supplemented on an accrual basis.

Administrative expenses

Salaries and fees: salaries, wages and fees (including holiday pay), i.e. all items subject to withholding tax and attributable to the accounting period, including severance pay.

Staff-related costs: pension liabilities and pension premiums paid under the Employees' Pensions Act and attributable to the accounting period, social security contributions and other mandatory insurance fees.

Other administrative expenses: e.g. catering, health care, recruitment, recreation, education, travel, office, coputer, marketing, entertainment, R&D, and other such expenses that are not treated as staff-related expenses.


Increases/decreases in the accumulated depreciation difference to be considered in determining taxable income, and increases/decreases in voluntary provisions deductible for tax purposes.

Average number of staff during the accounting period

Staff is classified into upper-level employees, lower-level employees and manual workers in accordance with the wage statistics nomenclatures of the Central Union of Business Employers and Statistics Finland, both of which distinguish between managers and other employees. The distinction between upper-level and lower-level employees is, however, ultimately determined by the firm's internal practice. Manual workers include porters, cleaners, janitors, maintenance men, cooks, chauffeurs etc.

Commission income

Fees and commission income from credit granting, market making and other financial brokering, as well as from the provision of guarantees and other off-balance sheet commitments, foreign exchange services, securities brokering, handling of trust department commissions and payment transactions, securities lending and other services of a similar nature.

Debt securities

Debt securities comprise all marketable debt instruments, such as Treasury bills, securities issued by municipalities, bank certificates of deposit, commercial papers, bonds and convertible bonds.

Debt securities issued to the public

Bonds and other comparable marketable bearer bonds and promissory notes made out to order and issued by an investment firm.

Deferred tax assets and tax liabilities

Deferred tax assets and liabilities arising from timing differences and other temporary differences.

Depreciation, amortisation and impairment of tangible and intangible assets

Depreciation, amortisation and impairment of tangible and intangible assets include 1) depreciations according to plan, based on the passage of time, and 2) impairment write-downs based on a probable permanent decrease in the asset's market value.

Derivative instruments

Premiums paid for derivative instruments, including positive fair values of derivative instruments included among assets.

Fees and commission expenses

Fees and commission expenses paid to third parties for services (Cf. under "Commission income"). Fees and commissions paid for securities or real estate transactions may be set up as an asset and treated as part of the acquisition cost of the security or real estate.

Impairment losses from other financial assets

Record here the impairment losses from held-to-maturity financial assets (debt securities) and from shares and equity of subsidiaries and holding companies valued at acquisition price.

Impairment losses on loans and other commitments

Impairment losses on receivables from credit institutions and on loans and advances to the public and general government, as well as impairment losses from off-balance sheet commitments.

Income and expenses from other than ordinary activities

Income and expenses pertaining to exceptional and non-recurring events which are not part of the ordinary business of the credit institution.

Intangible assets

Intangible rights and assets acquired against a consideration (e.g. concessions, patents, licenses and trademarks). Intangible assets generated through internal development activities can be included on a prudent basis.

Interest expenses

Interest expenses include interest, penalty interest, and commissions for loan arrangement and other commissions calculated on a time basis or by reference to the loan principal. Also included are issue losses incurred in connection with loans issues as well as fees and commissions on loans received, to the extent that these losses or commissions are attributable to the accounting period. Not included are fees in compensation of direct administrative expenses related to the granting of the loan.

Interest income

Interest income includes interest, penalty interest, and commissions for loan arrangement and other commissions calculated on a time basis or by reference to the amount of principal.

Also included are: the difference between the nominal value and the purchase price of acquired receivables to the extent that it is attributable to the accounting period; the difference between the resale price and purchase price of securities or other assets bought under repos imposing obligations on the investment firm and its contracting party during the validity of the agreement; and gains of an interest nature resulting from derivative instruments.

Fees and commissions which are comparable to interest income are allocated as interest income over the loan's maturity period.

Investment firm

Investment firms are business enterprises that have been granted a concession to act as investment firms by the Financial Supervision Authority FIN-FSA. Investment firms are allowed to engage in the intermediation and implementation of trading assignments in financial instruments, trading in financial instruments on own account, asset management, investment advisory services, emission arrangement and underwriting, and arrangement of multilateral trading. In addition, investment firms are allowed to offer services related to the foregoing, such as custodial services of financial instruments, and production and distribution of investment analyses.

Irrevocable commitments given in favour of a customer

Securities sale contracts which include a put option whereby the buyer may sell the securities back to the credit institution if he so wishes. Includes forward deposits, the unpaid amount of partly-paid securities, underwriting obligations, binding standby facilities and unused credit limits.


Liabilities is capital that external parties invest in the enterprise. A liability always involves a repayment obligation. The repayment period for current liabilities is at most one year and that of non-current liabilities is over one year. The main source of liabilities for an enterprise is banks. Different forms of lending include short and long-term credits, overdrafts on current accounts, and intermediated credits.

Liabilities to the public and general government

Liabilities to other than credit institutions and central banks.

Liguid assets

This item comprises Finnish and foreign notes and coins, cheques and bankers' drafts as well as other similar payment instruments. The item also comprises claims on central banks repayable on demand.

Net gains from securities and foreign currency transactions

Positive or negative difference (trade margin) between sales price and book value of debt securities, shares and participations belonging to the financial assets of a credit institution.

Positive and negative exchange differences resulting from currency exchange and from translating foreign-currency items (assets, debts and currency swap contracts) into domestic currency.

Net income from available-for-sale financial assets

Net income from financial assets that a company holds, often for an extended period of time, with the intent of selling them at a convenient opportunity.

Net income from hedge accounting

Hedging involves the use of e.g. derivative instruments for the purpose of eliminating risks relating to e.g. interest rate, exchange rate or commodities price developments.

Net income from investment property

Net income from land or buildings not in the company's own use. Assets are held for capital appreciation or rental income.

Other assets

Receivables from payment transactions, receivables on various settlement accounts, margin receivables related to derivative instruments and other receivables not reported under any other item in the balance sheet.

Other liabilities

Liabilities related to payment transactions, accounts payable and other liabilities unrelated to the granting of credit, as well as statutory provisions.

Other operating expenses

Rental expenses and other expenses attributable to owner-occupied property, including rental expenses for machinery and equipment, merger losses, insurance and other security costs, supervision, inspection and membership fees as well as other similar expenses which are not attributable to other items.

Other operating income

Gross rental income from real estate, as well as gross dividend income and rental income from real estate corporations, commissions and fees paid for administrative services etc. by businesses belonging to the same group or consolidation group, as well as other income from the ordinary business of the credit institution.

Other restricted reserves

Statutory reserves, reserves mandated by the company's bylaws, and other reserves.

Shares and equity

Shares, primary capital or investment units and other participations that confer a right to the equity of a company. Mutual fund shares and certificates conferring right to subscription to or income from such shares or units are treated as shares and units. Shares and participations in real estate companies are not included.

Subordinated liabilities

Debt securities issued by a credit institution under conditions of subordinate priority relative to other liabilities incurred by the credit institution. The item also includes perpetuals and other subordinated hybrid capital instruments.

Tangible assets

Tangible assets include real property (e.g. buildings, undeveloped land and water areas, property interests held under a lease, or shares and units in real estate companies) and other tangible assets, e.g. computer equipment, other office machinery and equipment, art objects, numismatic collections, vehicles, and machinery and equipment for property maintenance.


Credit institutions' and investment firms' turnover include the following items: Interest income + Leasing income + Income from equity investments + Commissions and fees + Net income or net losses from securities and foreign exchange transactions + Other operational income.

Also included after transition to IAS/IFRS-compliant reporting on 1 January 2005 are: Net income from available-for-sale financial assets + Net income from hedge accounting + Net income from investment property.

Unpaid subscriptions to share issues, investment unit issues or primary capital issues

Total amount of unpaid subscriptions to share issues, investment unit issues or primary capital issues prior to payment or annulment of the subscription.

Referencing instructions:

Official Statistics of Finland (OSF): Investment service companies [e-publication].
Helsinki: Statistics Finland [referred: 17.4.2014].
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