The rule in plain words

Deferred tax liabilities deductible from deferred tax assets that rely on future profitability must equal deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and do not arise from temporary di plus deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and arise from temporary differenc.

All the values are in the amount column (0010) of C 04.00.

How the Line4 Check report words itShow

Word for word as the report shows it when the rule fails.

Deferred tax liabilities deductible from deferred tax assets that rely on future profitability = Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and do not arise from temporary di + Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and arise from temporary differenc

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03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 C 04.00 as reported.
06This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.

The cells it reads

Capital adequacy - Memorandum items (C 04.00)

Rows

0070Deferred tax liabilities deductible from deferred tax assets that rely on future profitability
0080Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and do not arise from temporary di
0090Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and arise from temporary differenc

Column

0010Amount

A worked example

The first of its checks, with simple numbers.

Illustrative values

Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and do not arise from temporary di1,200

Deductible deferred tax liabilities associated with deferred tax assets that rely on future profitability and arise from temporary differenc800

Together2,000

What the rule then expects

Deferred tax liabilities deductible from deferred tax assets that rely on future profitability must then be 2,000.

2,000Passes

2,100Fails

A file that reports 2,000 passes. One that reports 2,100 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula. Cells are written as {template, row, column, sheet}.

{C_04.00,r0070,c0010,} = {C_04.00,r0080,c0010,} + {C_04.00,r0090,c0010,}

Every COREP own funds rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.

Deferred tax liabilities deductible from deferred tax assets that rely on future profitability must equal the sum of its two parts (EBA rule v0108_h)

The rule in plain words

What to do if your filing fails it

The cells it reads

A worked example

Other rules on C 04.00