The rule in plain words
For non-financial corporations: gross carrying amount or nominal amount must equal these four worked out:
- Carrying amount in F 04.02.1
- Minus accumulated negative changes in fair value due to credit risk on non-performing exposures in F 04.02.1
- Carrying amount in F 04.02.2
- Minus accumulated negative changes in fair value due to credit risk on non-performing exposures in F 04.02.2
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
F_18.00.A: Non-financial corporations, Gross carrying amount/Nominal amount = F_04.02.1: Non-financial corporations, Carrying amount - F_04.02.1: Non-financial corporations, Accumulated negative changes in fair value due to credit risk on non-performing exposures + F_04.02.2: Non-financial corporations, Carrying amount - F_04.02.2: Non-financial corporations, Accumulated negative changes in fair value due to credit risk on non-performing exposures
What to do if your filing fails it
- 01Open the templates below and find the cells the rule reads.
- 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
- 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 18.00 and F 04.02.1 or F 04.02.2 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
Row
- 0160Non-financial corporations
Columns
- 0010Carrying amount
- 0020Accumulated negative changes in fair value due to credit risk on non-performing exposures
Row
- 0170Non-financial corporations
Columns
- 0010Carrying amount
- 0020Accumulated negative changes in fair value due to credit risk on non-performing exposures
Information on performing and non-performing exposures (I) (F 18.00.a)
Row
- 0226Non-financial corporations
Column
- 0010Gross carrying amount/Nominal amount
A worked example
The first of its checks, with simple numbers.
Non-financial corporations, gross carrying amount or nominal amount must then be 550.
A file that reports 550 passes. One that reports 650 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_18.00.a,r0226,c0010,} = {F_04.02.1,r0160,c0010,} - {F_04.02.1,r0160,c0020,} + {F_04.02.2,r0170,c0010,} - {F_04.02.2,r0170,c0020,}Other rules on F 04.02.1
- Loans and advances: other financial corporations, gross carrying amount or nominal amount must equal a calculation over four cells (v5180_m)Blocking
- Households, gross carrying amount or nominal amount must equal a calculation over four cells (v5182_m)Blocking
- Loans and advances: credit institutions, gross carrying amount or nominal amount must equal a calculation over four cells (v5179_m)Blocking
- Debt instruments at strict LOCOM, or fair value through profit or loss or through equity not subject to impairment, gross carrying amount or nominal amount must equal a calculation over six cells (v5183_m)Blocking
- Loans and advances: general governments, gross carrying amount or nominal amount must equal a calculation over four cells (v5178_m)Blocking
- Loans and advances: central banks, gross carrying amount or nominal amount must equal a calculation over four cells (v5177_m)Blocking
- Loans and advances, gross carrying amount or nominal amount must equal a calculation over four cells (v5176_m)Blocking
- Debt securities: non-financial corporations, gross carrying amount or nominal amount must equal a calculation over four cells (v5175_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.