The rule in plain words
Carrying amount cannot be more than zero.
EBA checks it for two rows: (-) Treasury shares and (-) Interim dividends. That makes two checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
(-) Treasury shares <= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark 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
- 0240(-) Treasury shares
- 0260(-) Interim dividends
Column
- 0010Carrying amount
A worked example
The first of its checks, with simple numbers.
(-) Treasury shares can then be at most 0.
A file that reports 0 passes. One that reports 100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{F_01.03,r0240,c0010,} <= 0The next one:
{F_01.03,r0260,c0010,} <= 0Other rules on F 01.03
- An upper-limit check across breakdown of interests in unconsolidated structured entities and balance sheet statement: equity (F 30.02, v1010_m)Warning
- 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
- Carrying amount cannot be negative (v3899_s)Warning
- Fair value reserves must equal the sum of its four parts (v0059_m)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.