The rule in plain words
For equity instruments: carrying amount must equal domestic activities plus non-domestic activities.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_04.02.2: Equity instruments, Carrying amount = F_20.01: Equity instruments, Domestic activities + F_20.01: Equity instruments, Non-domestic activities
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Add up the parts in your file and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong column, or the total is out of date.
- 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark F 04.02.2 and F 20.01 as reported.
- 06This 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
Row
- 0010Equity instruments
Column
- 0010Carrying amount
Geographical breakdown of assets by location of the activities (F 20.01)
Row
- 0110Equity instruments
Columns
- 0010Domestic activities
- 0020Non-domestic activities
A worked example
The first of its checks, with simple numbers.
Equity instruments, carrying amount must then be 2,000.
A file that reports 2,000 passes. One that reports 2,100 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}.
{F_04.02.2,r0010,c0010,} = {F_20.01,r0110,c0010,} + {F_20.01,r0110,c0020,}Other rules on F 04.02.2
- Debt securities, carrying amount must equal the sum of its two parts (v23399_h)Warning
- Loans and advances, carrying amount must equal the sum of its two parts (v23380_h)Warning
- Financial assets designated at fair value through profit or loss, carrying amount must equal the sum of its two parts (v23408_h)Warning
- Financial assets designated at fair value through profit or loss must equal the sum of its three parts (v23928_h)Warning
- Accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5657_s)Blocking
- Carrying amount cannot be negative (v5656_s)Warning
- Equity instruments cannot be less than the sum of three rows (v1220_m)Blocking
- Financial assets designated at fair value through profit or loss must equal the sum of its two parts (v0804_m)Blocking
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.