The rule in plain words
Value adjustments recorded directly to the statement of profit or loss cannot be more than zero.
EBA checks it for 21 rows, from equity instruments (0010) to total (0530). That makes 21 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.
Value adjustments recorded directly to the statement of profit or loss: Equity instruments <= 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 12.00 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Movements in allowances for credit losses and impairment of equity instruments under national GAAP (F 12.00)
Rows
- 0010Equity instruments
- 0330Specific allowances for credit risk
- 0335Cash balances at central banks and other demand deposits
- 0340Debt securities
- 0350Central banks
- 0360General governments
- 0370Credit institutions
- 0380Other financial corporations
- 0390Non-financial corporations
- 0400Loans and advances
- 0410Central banks
- 0420General governments
- 0430Credit institutions
- 0440Other financial corporations
- 0450Non-financial corporations
- 0460Households
- 0470General allowances for credit risk
- 0475Cash balances at central banks and other demand deposits
- 0500General allowances for banking risks
- 0505Cash balances at central banks and other demand deposits
- 0530Total
Column
- 0090Value adjustments recorded directly to the statement of profit or loss
A worked example
The first of its checks, with simple numbers.
Equity instruments, value adjustments recorded directly to the statement of profit or loss 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_12.00,r0010,c0090,} <= 0The next five:
{F_12.00,r0330,c0090,} <= 0{F_12.00,r0335,c0090,} <= 0{F_12.00,r0340,c0090,} <= 0{F_12.00,r0350,c0090,} <= 0{F_12.00,r0360,c0090,} <= 0And 15 more, the same formula for the other cells it covers.
Other rules on F 12.00
- Each of the 72 values it checks in movements in allowances for credit losses and impairment of equity instruments cannot be more than zero (v3937_s)Warning
- None of the 48 values it checks in movements in allowances for credit losses and impairment of equity instruments can be negative (v3938_s)Warning
- Recoveries recorded directly to the statement of profit or loss cannot be negative (v3939_s)Warning
- Amounts written-off directly to the statement of profit or loss cannot be more than zero (v5687_s)Blocking
- Total must equal the sum of its four parts (v0895_m)Blocking
- Total must equal the sum of its three parts (v0894_m)Blocking
- Closing balance must equal the sum of its six parts (v0889_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.