The rule in plain words
Carrying amount minus assets under LOCOM, carrying amount must equal these four worked out:
- Unimpaired assets
- Minus assets under LOCOM, unimpaired assets
- Impaired assets
- Minus assets under LOCOM, impaired assets
EBA checks it for five rows: equity instruments, unquoted equity instruments, credit institutions, other financial corporations and non-financial corporations. That makes five 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.
of which: non-financial corporations, Carrying amount - of which: non-financial corporations, Carrying amount, of which: assets under LOCOM = of which: non-financial corporations, Unimpaired assets - of which: non-financial corporations, Unimpaired assets, of which: assets under LOCOM + of which: non-financial corporations, Impaired assets - of which: non-financial corporations, Impaired assets, of which: assets under LOCOM
What to do if your filing fails it
- 01Open the template 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 04.10 as reported.
- 05This 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
- 0020of which: unquoted
- 0030of which: credit institutions
- 0040of which: other financial corporations
- 0050of which: non-financial corporations
Columns
- 0010Carrying amount
- 0015Unimpaired assets
- 0016of which: assets under LOCOM
- 0020Impaired assets
- 0025of which: assets under LOCOM
- 0070of which: assets under LOCOM
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_04.10,r0050,c0010,} - {F_04.10,r0050,c0070,} = {F_04.10,r0050,c0015,} - {F_04.10,r0050,c0016,} + {F_04.10,r0050,c0020,} - {F_04.10,r0050,c0025,}The next four:
{F_04.10,r0040,c0010,} - {F_04.10,r0040,c0070,} = {F_04.10,r0040,c0015,} - {F_04.10,r0040,c0016,} + {F_04.10,r0040,c0020,} - {F_04.10,r0040,c0025,}{F_04.10,r0030,c0010,} - {F_04.10,r0030,c0070,} = {F_04.10,r0030,c0015,} - {F_04.10,r0030,c0016,} + {F_04.10,r0030,c0020,} - {F_04.10,r0030,c0025,}{F_04.10,r0020,c0010,} - {F_04.10,r0020,c0070,} = {F_04.10,r0020,c0015,} - {F_04.10,r0020,c0016,} + {F_04.10,r0020,c0020,} - {F_04.10,r0020,c0025,}{F_04.10,r0010,c0010,} - {F_04.10,r0010,c0070,} = {F_04.10,r0010,c0015,} - {F_04.10,r0010,c0016,} + {F_04.10,r0010,c0020,} - {F_04.10,r0010,c0025,}Other rules on F 04.10
- Carrying amount minus assets under LOCOM, carrying amount must equal a calculation over seven columns (v5430_m)Warning
- Each of the 80 values it checks in breakdown of financial assets cannot be more than zero (v5668_s)Warning
- Each of the 45 values it checks in breakdown of financial assets cannot be more than zero (v5669_s)Warning
- Loans and advances must equal the sum of its six parts (v5044_m)Warning
- Debt securities must equal the sum of its five parts (v5043_m)Warning
- None of the 80 values it checks in breakdown of financial assets can be negative (v3911_s)Warning
- Assets under LOCOM, carrying amount must equal the sum of its three parts (v8698_m)Warning
- Loans and advances, carrying amount must equal the sum of its two parts (v23383_h)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.