The rule in plain words

Total deferred tax liabilities must equal deferred tax liabilities non deductible from deferred tax assets that rely on future profitability plus deferred tax liabilities deductible from deferred tax assets that rely on future profitability.

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.

Total deferred tax liabilities = Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability + Deferred tax liabilities deductible from deferred tax assets that rely on future profitability

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03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 warning. It does not stop the filing on its own, but your authority may ask you to explain it.

The cells it reads

Capital adequacy - Memorandum items (C 04.00)

Rows

0050Total deferred tax liabilities
0060Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability
0070Deferred tax liabilities deductible from deferred tax assets that rely on future profitability

Column

0010Amount

A worked example

The first of its checks, with simple numbers.

Illustrative values

Deferred tax liabilities non deductible from deferred tax assets that rely on future profitability1,200

Deferred tax liabilities deductible from deferred tax assets that rely on future profitability800

Together2,000

What the rule then expects

Total deferred tax liabilities 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,r0050,c0010,} = {C_04.00,r0060,c0010,} + {C_04.00,r0070,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.

Total deferred tax liabilities must equal the sum of its two parts (EBA rule v0224_m)

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