The rule in plain words
Derivatives, hedge accounting cannot be negative.
How the Line4 Check report words itShowHide
Word for word as the report shows it when the rule fails.
Hedge accounting: Derivatives >= 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 08.01 as reported.
- 05This is a blocking check. A filing that fails it is normally rejected, so fix it before you submit.
The cells it reads
Breakdown of financial liabilities by product and by counterparty (a) (F 08.01.a)
Row
- 0010Derivatives
Column
- 0037Hedge accounting
A worked example
The first of its checks, with simple numbers.
What the rule then expects
Derivatives, hedge accounting must then be at least 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_08.01.a,r0010,c0037,} >= 0Other rules on F 08.01.a
- Lease liabilities cannot be more than other financial liabilities (v7785_m)Warning
- None of the 88 values it checks in breakdown of financial liabilities can be negative (v3924_s)Warning
- Designated at fair value through profit or loss cannot be negative (v3922_s)Warning
- None of the 82 values it checks in breakdown of financial liabilities can be negative (v8372_s)Warning
- Debt securities issued must equal the sum of its five parts (v2277_m)Warning
- Other debt securities issued must equal the sum of its two parts (v1948_m)Warning
- Households must equal the sum of its four parts (v1947_m)Blocking
- Non-financial corporations must equal the sum of its four parts (v1946_m)Blocking
Every FINREP 9 rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.