The rule in plain words
These five added up, all for interest expenses cannot be more than interest expense, current period:
- Associates and joint ventures
- Parent and parent entities with joint control or significant influence
- Key management of the instruction or its parent
- Other related parties
- Subsidiaries and other entities of the same group
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_31.02: Interest expenses, Associates and joint ventures + F_31.02: Interest expenses, Parent and parent entities with joint control or significant influence + F_31.02: Interest expenses, Key management of the instruction or its parent + F_31.02: Interest expenses, Other related parties + F_31.02: Interest expenses, Subsidiaries and other entities of the same group <= F_02.00: (Interest expense)
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 02.00 and F 31.02 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
Statement of profit or loss (F 02.00)
Row
- 0090(Interest expense)
Column
- 0010Current period
Related parties: expenses and income generated by transactions with (F 31.02)
Row
- 0020Interest expenses
Columns
- 0010Parent and parent entities with joint control or significant influence
- 0020Subsidiaries and other entities of the same group
- 0030Associates and joint ventures
- 0040Key management of the instruction or its parent
- 0050Other related parties
A worked example
The first of its checks, with simple numbers.
(interest expense), current period must then be at least 2,900.
A file that reports 2,900 passes. One that reports 2,800 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}.
sum({F_31.02,r0020,c0030,},{F_31.02,r0020,c0010,},{F_31.02,r0020,c0040,},{F_31.02,r0020,c0050,},{F_31.02,r0020,c0020,}) <= {F_02.00,r0090,c0010,}Other rules on F 02.00
- The sum of five columns cannot be more than interest income, current period (v1372_m)Warning
- The sum of five columns cannot be more than fee and commission income, current period (v1375_m)Warning
- The sum of five columns cannot be more than fee and commission expenses, current period (v1376_m)Warning
- (tax expenses or income related to profit or loss from continuing operations), current period must equal the sum of its two parts (v1366_h)Warning
- Share of the profit or loss of investments insubsidaries, joint ventures and associates accounted for using the equity method, current period must equal the sum of its two parts (v1363_m)Warning
- Negative goodwill recognised in profit or loss, current period must equal the sum of its two parts (v1362_h)Warning
- (impairment or reversal of impairment of investments in subsidiaries, joint ventures and associates), current period must equal the sum of its two parts (v1360_h)Warning
- (impairment or reversal of impairment on financial assets not measured at fair value through profit or loss), current period must equal the sum of its two parts (v1359_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.