The rule in plain words
ECL amount IFRS 9 Stage 1 cannot be more than exposure value - IFRS 9 Stage 1.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
ECL amount IFRS 9 Stage 1 <= Exposure value - IFRS 9 Stage 1
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 compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark C 115.00 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 high default portfolios (C 115.00)
Columns
- 0050Exposure value - IFRS 9 Stage 1
- 0145ECL amount IFRS 9 Stage 1
A worked example
The first of its checks, with simple numbers.
Illustrative values
ECL amount IFRS 9 Stage 11,200
What the rule then expects
Exposure value - IFRS 9 Stage 1 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.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{C_115.00,,c0145,} <= {C_115.00,,c0050,}Other rules on C 115.00
- ECL amount IFRS 9 Stage 2 cannot be more than exposure value, IFRS 9 Stage 2 (v16279_m)Warning
- ECL amount IFRS 9 Stage 3 cannot be more than exposure value, IFRS 9 Stage 3 (v16280_m)Warning
- The cell cannot be more than 1 (column 0130, v16273_m)Warning
- The cell cannot be more than 1 (column 0106, v16272_m)Warning
- None of the 23 values it checks in details on exposures in high default portfolios can be negative (v16313_s)Warning
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.