Line4

2 min readWarningEBA reporting framework 4.2Updated 10 November 2026

Debt instruments at strict LOCOM, or fair value through profit or loss or through equity not subject to impairment: debt securities, gross carrying amount or nominal amount must equal a calculation over six cells (EBA rule v5462_m)

A warning in the financial reporting return (FINREP 9), on templates F 04.07, breakdown of financial assets by instrument and by counterparty sector: non-trading non-derivative financial assets measured at fair value through profit or loss, 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, F 04.10, breakdown of financial assets by instrument and by counterparty sector: other non-trading non-derivative financial assets and F 18.00.a, information on performing and non-performing exposures (I).

Check your file against this ruleWhat to do if it fails

The rule in plain words

For debt securities: gross carrying amount or nominal amount must equal these six worked out:

  • Carrying amount in F 04.07
  • Minus accumulated negative changes in fair value due to credit risk on non-performing exposures
  • Carrying amount in F 04.08
  • Minus accumulated negative changes in fair value due to credit risk
  • Assets under LOCOM, impaired assets
  • Assets under LOCOM, unimpaired assets
How the Line4 Check report words itShow

Word for word as the report shows it when the rule fails.

F_18.00.A: Debt securities, Gross carrying amount/Nominal amount = F_04.07: Debt securities, Carrying amount - F_04.07: Debt securities, Accumulated negative changes in fair value due to credit risk on non-performing exposures + F_04.08: Debt securities, Carrying amount - F_04.08: Debt securities, Accumulated negative changes in fair value due to credit risk + F_04.10: Debt securities, Impaired assets, of which: assets under LOCOM + F_04.10: Debt securities, Unimpaired assets, of which: assets under LOCOM

What to do if your filing fails it

  1. 01Open the templates below and find the cells the rule reads.
  2. 02Work out both sides from your file, as the rule in plain words sets out, and compare them.
  3. 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
  4. 04It runs only when your filing indicators mark F 18.00 and F 04.07, F 04.08 or F 04.10 as reported.
  5. 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

Breakdown of financial assets by instrument and by counterparty sector: non-trading non-derivative financial assets measured at fair value through profit or loss (F 04.07)

Row

  • 0060Debt securities

Columns

  • 0010Carrying amount
  • 0021Accumulated negative changes in fair value due to credit risk on non-performing exposures

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)

Row

  • 0060Debt securities

Columns

  • 0010Carrying amount
  • 0030Accumulated negative changes in fair value due to credit risk

Breakdown of financial assets by instrument and by counterparty sector: other non-trading non-derivative financial assets (F 04.10)

Row

  • 0060Debt securities

Columns

  • 0016of which: assets under LOCOM
  • 0025of which: assets under LOCOM

Information on performing and non-performing exposures (I) (F 18.00.a)

Row

  • 0211Debt securities

Column

  • 0010Gross carrying amount/Nominal amount

A worked example

The first of its checks, with simple numbers.

Illustrative values
Debt securities, carrying amount in F 04.071,200
Debt securities, accumulated negative changes in fair value due to credit risk on non-performing exposures (taken away)800
Debt securities, carrying amount in F 04.08450
Debt securities, accumulated negative changes in fair value due to credit risk (taken away)300
Debt securities, assets under LOCOM, impaired assets150
Debt securities, assets under LOCOM, unimpaired assets100
Together800
What the rule then expects

Debt securities, gross carrying amount or nominal amount must then be 800.

800Passes
900Fails

A file that reports 800 passes. One that reports 900 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. Cells are written as {template, row, column, sheet}.

{F_18.00.a,r0211,c0010,} = {F_04.07,r0060,c0010,} - {F_04.07,r0060,c0021,} + {F_04.08,r0060,c0010,} - {F_04.08,r0060,c0030,} + sum({F_04.10,r0060,c0025,},{F_04.10,r0060,c0016,})

Every FINREP 9 rule, by template

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