The rule in plain words
The absolute value of non-financial corporations cannot be less than the absolute value of small and medium-sized Enterprises.
EBA checks it for 13 columns, from unimpaired assets (0010) to accumulated total write-offs (0100). That makes 13 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.
Carrying amount: the absolute value of Non-financial corporations >= the absolute value of Of which: Small and Medium-sized Enterprises
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 smaller 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 04.09 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
Rows
- 0120Non-financial corporations
- 0125Of which: Small and Medium-sized Enterprises
Columns
- 0010Unimpaired assets
- 0015of which: assets under LOCOM
- 0020Impaired assets
- 0025of which: assets under LOCOM
- 0030Specific allowances for credit risk
- 0041General allowances for credit risk affecting carrying amount
- 0045General allowances for banking risk affecting carrying amount
- 0050Carrying amount
- 0060of which: assets under LOCOM
- 0070Accumulated negative value adjustments on LOCOM assets - market risk induced
- 0080Accumulated negative value adjustments on LOCOM assets - credit risk induced
- 0090Accumulated partial write-offs
- 0100Accumulated total write-offs
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}.
abs({F_04.09,r0120,c0050,}) >= abs({F_04.09,r0125,c0050,})The next five:
abs({F_04.09,r0120,c0045,}) >= abs({F_04.09,r0125,c0045,})abs({F_04.09,r0120,c0090,}) >= abs({F_04.09,r0125,c0090,})abs({F_04.09,r0120,c0060,}) >= abs({F_04.09,r0125,c0060,})abs({F_04.09,r0120,c0025,}) >= abs({F_04.09,r0125,c0025,})abs({F_04.09,r0120,c0030,}) >= abs({F_04.09,r0125,c0030,})And 7 more, the same formula for the other cells it covers.
Other rules on F 04.09
- Non-trading financial assets measured at a cost-based method, carrying amount must equal the sum of its two parts (v23409_h)Warning
- Debt securities, carrying amount must equal the sum of its two parts (v23401_h)Warning
- Loans and advances, carrying amount must equal the sum of its two parts (v23382_h)Warning
- Non-trading financial assets measured at a cost-based method must equal the sum of its three parts (v23899_h)Warning
- Small and medium-sized Enterprises, accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions must equal the sum of its six parts (v7846_m)Warning
- Small and medium-sized Enterprises: impaired gross carrying amount or nominal amount must equal impaired assets in F 04.09 plus impaired assets in F 04.10 minus assets under LOCOM (v7818_m)Warning
- Small and medium-sized Enterprises, gross carrying amount or nominal amount must equal a calculation over six cells (v7817_m)Warning
- Equity instruments, carrying amount must equal the sum of its two parts (v6129_h)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.