The rule in plain words
Take these three added up, all for equity instruments issued:
- Asset management
- Other activities
- Securitisation special purpose entities
The result cannot be more than these three added up:
- Equity instruments issued other than capital, carrying amount
- Capital, carrying amount
- Share premium, carrying amount
The headline gives only the kind of check and the template, because the rule is too long to say in a headline. The plain words above say all of it.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_30.02: Equity instruments issued, Asset management + F_30.02: Equity instruments issued, Other activities + F_30.02: Equity instruments issued, Securitisation Special Purpose Entities <= F_01.03: Equity instruments issued other than capital + F_01.03: Capital + F_01.03: Share premium
What to do if your filing fails it
- 01Open the templates 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 F 30.02 and F 01.03 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
Balance sheet statement: equity (F 01.03)
Rows
- 0010Capital
- 0040Share premium
- 0050Equity instruments issued other than capital
Column
- 0010Carrying amount
Breakdown of interests in unconsolidated structured entities by nature of the activities (F 30.02)
Row
- 0080Equity instruments issued
Columns
- 0010Securitisation Special Purpose Entities
- 0020Asset management
- 0030Other activities
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
sum({F_30.02,r0080,c0020,},{F_30.02,r0080,c0030,},{F_30.02,r0080,c0010,}) <= sum({F_01.03,r0050,c0010,},{F_01.03,r0010,c0010,},{F_01.03,r0040,c0010,})Other rules on F 01.03
- Profit or loss attributable to owners of the parent must equal attributable to owners of the parent (v0786_m)Warning
- Total equity must equal the sum of its 14 parts (v0780_m)Warning
- Accumulated other comprehensive income must equal the sum of its two parts (v0779_m)Warning
- Fair value reserves must equal the sum of its four parts (v0059_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.