The rule in plain words
Fair value reserves must equal these four added up:
- Hedging derivatives. cash flow hedges
- Hedges of net investments in foreign operations
- Hedging derivatives. other hedges
- Non-trading non-derivative financial assets measured at fair value to equity
All the values are in the carrying amount column (0010) of F 01.03.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Fair value reserves = Hedging derivatives. Cash flow hedges + Hedges of net investments in foreign operations + Hedging derivatives. Other hedges + Non-trading non-derivative financial assets measured at fair value to equity
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 01.03 as reported.
- 06This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Balance sheet statement: equity (F 01.03)
Rows
- 0205Fair value reserves
- 0206Hedges of net investments in foreign operations
- 0207Hedging derivatives. Cash flow hedges
- 0208Hedging derivatives. Other hedges
- 0209Non-trading non-derivative financial assets measured at fair value to equity
Column
- 0010Carrying amount
A worked example
The first of its checks, with simple numbers.
Fair value reserves must then be 2,750.
A file that reports 2,750 passes. One that reports 2,850 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{F_01.03,r0205,c0010,} = {F_01.03,r0207,c0010,} + {F_01.03,r0206,c0010,} + {F_01.03,r0208,c0010,} + {F_01.03,r0209,c0010,}Other rules on F 01.03
- Accumulated other comprehensive income must equal the sum of its two parts (v0779_m)Warning
- Total equity must equal the sum of its 14 parts (v0780_m)Warning
- Profit or loss attributable to owners of the parent must equal attributable to owners of the parent (v0786_m)Warning
- An upper-limit check across breakdown of interests in unconsolidated structured entities and balance sheet statement: equity (F 30.02, v1010_m)Warning
- Carrying amount cannot be more than zero (v2060_s)Warning
- Carrying amount cannot be negative (v3899_s)Warning
- Items that will not be reclassified to profit and loss must equal the sum of its eight parts (v5022_m)Warning
- Items that may be reclassified to profit and loss must equal the sum of its seven parts (v5023_m)Warning
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.