Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Carrying amount must equal the sum of its five parts (EBA rule v5425_m)

A warning in the financial reporting return (FINREP 9), on template F 04.08, breakdown of financial assets by instrument and by counterparty sector: non-trading non-derivative financial assets measured at fair value to equity.

Check your file against this ruleWhat to do if it fails

The rule in plain words

Carrying amount must equal these five added up:

  • Unimpaired assets
  • Impaired assets
  • Specific allowances for credit risk
  • General allowances for credit risk affecting carrying amount
  • General allowances for banking risk affecting carrying amount

EBA checks it for 20 rows, from equity instruments (0010) to non-trading non-derivative financial assets measured at fair value to equity (0190). That makes 20 checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

Other financial corporations, Carrying amount = Other financial corporations, Unimpaired assets + Other financial corporations, Impaired assets + Other financial corporations, Specific allowances for credit risk + Other financial corporations, General allowances for credit risk affecting carrying amount + Other financial corporations, General allowances for banking risk affecting carrying amount

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Add up the parts in your file and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark F 04.08 as reported.
  6. 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

Breakdown of financial assets by instrument and by counterparty sector: non-trading non-derivative financial assets measured at fair value to equity (F 04.08)

Rows

  • 0010Equity instruments
  • 0020of which: unquoted
  • 0030of which: credit institutions
  • 0040of which: other financial corporations
  • 0050of which: non-financial corporations
  • 0060Debt securities
  • 0070Central banks
  • 0080General governments
  • 0090Credit institutions
  • 0100Other financial corporations
  • 0110Non-financial corporations
  • 0120Loans and advances
  • 0130Central banks
  • 0140General governments
  • 0150Credit institutions
  • 0160Other financial corporations
  • 0170Non-financial corporations
  • 0175Of which: Small and Medium-sized Enterprises
  • 0180Households
  • 0190Non-trading non-derivative financial assets measured at fair value to equity

Columns

  • 0035Carrying amount
  • 0040Unimpaired assets
  • 0050Impaired assets
  • 0060Specific allowances for credit risk
  • 0070General allowances for credit risk affecting carrying amount
  • 0080General allowances for banking risk affecting carrying amount

A worked example

The first of its checks, with simple numbers.

Illustrative values
Unimpaired assets1,200
Impaired assets800
Specific allowances for credit risk450
General allowances for credit risk affecting carrying amount300
General allowances for banking risk affecting carrying amount150
Together2,900
What the rule then expects

Carrying amount must then be 2,900.

2,900Passes
3,000Fails

A file that reports 2,900 passes. One that reports 3,000 fails, by 100.

The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.

Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

{F_04.08,r0160,c0035,} = {F_04.08,r0160,c0040,} + {F_04.08,r0160,c0050,} + {F_04.08,r0160,c0060,} + {F_04.08,r0160,c0070,} + {F_04.08,r0160,c0080,}

The next five:

{F_04.08,r0010,c0035,} = {F_04.08,r0010,c0040,} + {F_04.08,r0010,c0050,} + {F_04.08,r0010,c0060,} + {F_04.08,r0010,c0070,} + {F_04.08,r0010,c0080,}{F_04.08,r0140,c0035,} = {F_04.08,r0140,c0040,} + {F_04.08,r0140,c0050,} + {F_04.08,r0140,c0060,} + {F_04.08,r0140,c0070,} + {F_04.08,r0140,c0080,}{F_04.08,r0020,c0035,} = {F_04.08,r0020,c0040,} + {F_04.08,r0020,c0050,} + {F_04.08,r0020,c0060,} + {F_04.08,r0020,c0070,} + {F_04.08,r0020,c0080,}{F_04.08,r0090,c0035,} = {F_04.08,r0090,c0040,} + {F_04.08,r0090,c0050,} + {F_04.08,r0090,c0060,} + {F_04.08,r0090,c0070,} + {F_04.08,r0090,c0080,}{F_04.08,r0060,c0035,} = {F_04.08,r0060,c0040,} + {F_04.08,r0060,c0050,} + {F_04.08,r0060,c0060,} + {F_04.08,r0060,c0070,} + {F_04.08,r0060,c0080,}

And 14 more, the same formula for the other cells it covers.

Every FINREP 9 rule, by template

Checks like this one, run at the point of submission, are the first step to real-time supervision.