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[Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2022-09-23","question_submitted_on":"2022-09-23","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1311, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1311, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1311","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator.md","body_sha256":"020db14492cc698a898f8f03f84dcf95ca157c588d518d7393c2d93dc88cc80b"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 1311 — Q&A — Calculation of denominator [Answer Published]\"\nshortTitle: \"ESMA Q&A 1311 — Q&A — Calculation of denominator [Answer Published]\"\nanswer_id: ESMA_QA_1311\ntopic: \"Ancillary activity\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFID II\"\nmifid_level3: true\nmica_level2: false\nlegal_basis: \"MiFID II\"\ndate: 23 September 2022\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/1311\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 23 September 2022\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/1311\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"ESMA\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"ESMA Answer\"\n    locator: \"ESMA Q&A entry ESMA_QA_1311: field 'ESMA Answer', no 'Answer provided by' line\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2022-09-23\"\n  question_submitted_on: \"2022-09-23\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_1311, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_1311, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer by ESMA, published in its Q&A tool · not legislation · published 23 Sep 2022 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 23 September 2022 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1311)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 1311 — Q&A — Calculation of denominator \\[Answer Published\\] |\n| **Prepared by** | ESMA |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_1311 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 23 September 2022; question submitted 23 September 2022 |\n| **Legal basis** | MiFID II |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Calculation of denominator**\n\n### Question\n\nShould the denominator in the capital employed test under Article 5(4) of CDR 2021/1833 be calculated using consolidated accounts? Should firms use capital on a worldwide basis or just capital employed within the EU?\n\n***\n\n### Answer\n\n\\[ESMA70-872942901 Commodity derivatives, Ancillary services, Q&A 10\\]\n\nThe CDR 2021/1833 RTS 20 capital employed test should be calculated using consolidated accounts. According to Article 5(4) of CDR 2021/1833, the capital employed for carrying out the main business of a group shall be the sum of the total assets of the group minus its short-term debt as recorded in the consolidated financial statements of the group at the end of the relevant annual calculation period.\n\nFirms shall use capital employed on a worldwide basis when calculating the capital test.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1311)\n"}