The rule in plain words
ECL amount - 12 months - IFRS 9 cannot be more than exposure value - IFRS 9.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
ECL amount - 12 months - IFRS 9 <= Exposure value - IFRS 9
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Compare the values in your file. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C 111.00 as reported.
- 05This 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
Details on exposures in low default portfolios by counterparty (C 111.00)
Columns
- 0040Exposure value - IFRS 9
- 0400ECL amount - 12 months - IFRS 9
A worked example
The first of its checks, with simple numbers.
Illustrative values
ECL amount - 12 months - IFRS 91,200
What the rule then expects
Exposure value - IFRS 9 must then be at least 1,200.
1,200Passes
1,100Fails
A file that reports 1,200 passes. One that reports 1,100 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_111.00,,c0400,} <= {C_111.00,,c0040,}Other rules on C 111.00
Every SBP IFRS 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.