The rule in plain words
Items that may be reclassified to profit and loss must equal these seven added up:
- Hedges of net investments in foreign operations [effective portion]
- Foreign currency translation
- Hedging derivatives. cash flow hedges reserve (effective portion)
- Fair value changes of debt instruments measured at fair value through other comprehensive income
- Hedging instruments [not designated elements]
- Non-current assets and disposal groups classified as held for sale
- Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates
All the values are in the carrying amount column (0010) of F 01.03.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Items that may be reclassified to profit and loss = Hedges of net investments in foreign operations [effective portion] + Foreign currency translation + Hedging derivatives. Cash flow hedges reserve (effective portion) + Fair value changes of debt instruments measured at fair value through other comprehensive income + Hedging instruments [not designated elements] + Non-current assets and disposal groups classified as held for sale + Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates
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- 03If they differ, a part is missing, a value sits in the wrong row, or the total is out of date.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 01.03 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
Balance sheet statement: equity (F 01.03)
Rows
- 0128Items that may be reclassified to profit and loss
- 0130Hedges of net investments in foreign operations [effective portion]
- 0140Foreign currency translation
- 0150Hedging derivatives. Cash flow hedges reserve (effective portion)
- 0155Fair value changes of debt instruments measured at fair value through other comprehensive income
- 0165Hedging instruments [not designated elements]
- 0170Non-current assets and disposal groups classified as held for sale
- 0180Share of other recognised income and expense of investments in subsidiaries, joint ventures and associates
Column
- 0010Carrying amount
A worked example
The first of its checks, with simple numbers.
Items that may be reclassified to profit and loss must then be 3,060.
A file that reports 3,060 passes. One that reports 3,160 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_01.03,r0128,c0010,} = {F_01.03,r0130,c0010,} + {F_01.03,r0140,c0010,} + {F_01.03,r0150,c0010,} + {F_01.03,r0155,c0010,} + {F_01.03,r0165,c0010,} + {F_01.03,r0170,c0010,} + {F_01.03,r0180,c0010,}Other rules on F 01.03
- Items that will not be reclassified to profit and loss must equal the sum of its eight parts (v5022_m)Warning
- Carrying amount cannot be negative (v3899_s)Warning
- Carrying amount cannot be more than zero (v2060_s)Warning
- A conditional check across statement of comprehensive income and balance sheet statement: equity (F 03.00, v8715_m)Warning
- 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
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.