The rule in plain words
Non-trading non-derivative financial assets measured at fair value through profit or loss must equal these three added up:
- Equity instruments
- Debt securities
- Loans and advances
All the values are in the carrying amount column (0010) of F 04.07.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Carrying amount: Non-trading non-derivative financial assets measured at fair value through profit or loss = Equity instruments + Debt securities + Loans and advances
What to do if your filing fails it
- 01Open the template 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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 04.07 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
Rows
- 0010Equity instruments
- 0060Debt securities
- 0120Loans and advances
- 0190Non-trading non-derivative financial assets measured at fair value through profit or loss
Column
- 0010Carrying amount
A worked example
The first of its checks, with simple numbers.
Non-trading non-derivative financial assets measured at fair value through profit or loss must then be 2,450.
A file that reports 2,450 passes. One that reports 2,550 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_04.07,r0190,c0010,} = {F_04.07,r0010,c0010,} + {F_04.07,r0060,c0010,} + {F_04.07,r0120,c0010,}Other rules on F 04.07
- Non-trading non-derivative financial assets measured at fair value through profit or loss, carrying amount must equal the sum of its two parts (v23406_h)Warning
- Debt securities, carrying amount must equal the sum of its two parts (v23395_h)Warning
- Equity instruments, carrying amount must equal the sum of its two parts (v23388_h)Warning
- Loans and advances, carrying amount must equal the sum of its two parts (v23376_h)Warning
- Accumulated negative changes in fair value due to credit risk on non-performing exposures cannot be more than zero (v5663_s)Blocking
- Loans and advances, accumulated negative changes in fair value due to credit risk on non-performing exposures must equal the sum of its four parts (v5537_m)Blocking
- Loans and advances, gross carrying amount must equal a calculation over ten cells (v5533_m)Warning
- A total-and-parts check across information on performing and non-performing exposures, and breakdown of financial assets (F 18.00.b, F 04.08, F 04.10, row 0231, v5517_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.