The rule in plain words
Total adjustments must equal other transitional adjustments.
All the values are in the adjustments included in RWAs column (0040) of C 05.01.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Adjustments included in RWAs: TOTAL ADJUSTMENTS = OTHER TRANSITIONAL ADJUSTMENTS
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 03EBA allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark C 05.01 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
Capital adequacy - transitional provisions: Summary (C 05.01)
Rows
- 0010TOTAL ADJUSTMENTS
- 0100OTHER TRANSITIONAL ADJUSTMENTS
Column
- 0040Adjustments included in RWAs
A worked example
The first of its checks, with simple numbers.
Other transitional adjustments must then be 1,200.
A file that reports 1,200 passes. One that reports 1,300 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}.
{C_05.01,r0010,c0040,} = {C_05.01,r0100,c0040,}Other rules on C 05.01
- Applicable percentage cannot be more than 1 (v6302_m)Warning
- Eligible amount without transitional provisions cannot be more than zero (v5016_s)Warning
- If adjustments to CET1 is reported, eligible amount without transitional provisions must be reported (v4889_m)Warning
- Eligible amount without transitional provisions cannot be negative (v3693_s)Warning
- Adjustments to CET1 cannot be negative (v3690_s)Warning
- Adjustments included in RWAs cannot be negative (v3689_s)Warning
- Minority interests and equivalents must equal transitional recognition in consolidated own funds of qualifying additional Tier 1 capital (v8651_m)Warning
- Minority interests and equivalents must equal transitional recognition in consolidated own funds of qualifying Tier 2 capital (v8652_m)Warning
Every COREP own funds rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.