The rule in plain words
(-) haircuts for trading assets at fair value cannot be more than zero.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
(-) Haircuts for trading assets at fair value <= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark F 01.01 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
Balance sheet statement: assets (F 01.01)
Row
- 0375(-) Haircuts for trading assets at fair value
Column
- 0010Carrying amount
A worked example
The first of its checks, with simple numbers.
What the rule then expects
(-) haircuts for trading assets at fair value can then be at most 0.
0Passes
100Fails
A file that reports 0 passes. One that reports 100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula. Cells are written as {template, row, column, sheet}.
{F_01.01,r0375,c0010,} <= 0Other rules on F 01.01
- If non-trading non-derivative financial assets measured at fair value through profit or loss, carrying amount is more than zero, the sum of three columns must be more than zero (v5375_m)Warning
- The sum of three rows must equal derivatives in F 20.04 (all sheets added up) (v5353_m)Warning
- Equity instruments in F 20.04 (all sheets added up) must equal the sum of nine rows (v6063_m)Warning
- Non-trading non-derivative financial assets measured at a cost-based method: equity instruments in F 15.00.a cannot be more than equity instruments in F 01.01 (v5144_m)Warning
- Non-trading non-derivative financial assets measured at fair value to equity: loans and advances: carrying amount must equal level 1 plus level 3 plus level 2 (v5091_m)Warning
- Debt securities: carrying amount must equal level 3 plus level 1 plus level 2 (v5090_m)Warning
- Non-trading non-derivative financial assets measured at fair value to equity: equity instruments: carrying amount must equal level 3 plus level 1 plus level 2 (v5089_m)Warning
- Non-trading non-derivative financial assets measured at fair value to equity, carrying amount must equal the sum of its three parts (v5088_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.