(1) The difference between all income and expense from transactions with financial instruments in the trading portfolio and from the trade in precious metals, as well as between the appurtenant gains from write-ups and losses from write-downs, is to be shown as income or expense of the trading portfolio. Expenses for the formation of provisions for anticipated losses from transactions designated in sentence 1 and the income from the reversal of these provisions are to be included in the netting calculation.
(2) Expenses for write-downs of participating interests, participating interests held in affiliated enterprises and investment securities treated like fixed assets may be set off against the gains from write-ups of such assets and reported in an income or expense item. The set-off pursuant to sentence 1 may also include the expenses and income from transactions with such assets.
(3) Credit institutions allocating unrealised reserves to their liable equity capital pursuant to section 10 (2b) sentence 1 number 6 or 7 of the Banking Act in the version applicable until 31 December 2013 are to state in the notes to the balance sheet and to the profit and loss account the amount at which such reserves have been allocated to the liable equity capital.