Line4

1 min readWarningEBA reporting framework 4.2Updated 10 November 2026

The absolute value of non-financial corporations cannot be less than the absolute value of SMEs (F 24.02, EBA rule v903270_h)

A warning in the financial reporting return (FINREP 9), on template F 24.02, loans and advances: flow of impairments and accumulated negative changes in fair value due to credit risk on non-performing exposures.

Check your file against this ruleWhat to do if it fails

The rule in plain words

The absolute value of non-financial corporations cannot be less than the absolute value of SMEs.

EBA checks it for seven rows: opening balance, increases during the period, impairments against interest accrued, decreases during the period, reversal of impairment and negative changes in fair value due to credit risk, release of allowances due to unwinding process, and closing balance. That makes seven checks. A failure names the one that failed.

How the Line4 Check report words itShow

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.

the absolute value of Increases during the period, of which: Non-financial corporations >= the absolute value of Increases during the period, of which: SMEs

What to do if your filing fails it

  1. 01Open the template below and find the cells the rule reads.
  2. 02Compare the values in your file. If the first is smaller than it may be, one of them is wrong: check both before you change either.
  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 24.02 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

Loans and advances: flow of impairments and accumulated negative changes in fair value due to credit risk on non-performing exposures (F 24.02)

Rows

  • 0010Opening balance
  • 0020Increases during the period
  • 0030Of which: impairments against interest accrued
  • 0040Decreases during the period
  • 0050Of which: Reversal of impairment and negative changes in fair value due to credit risk
  • 0060Of which: Release of allowances due to unwinding process
  • 0070Closing balance

Columns

  • 0040of which: Non-financial corporations
  • 0050of which: SMEs
Show the rule as writtenShow

EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.

abs({F_24.02,r0020,c0040,}) >= abs({F_24.02,r0020,c0050,})

The next five:

abs({F_24.02,r0070,c0040,}) >= abs({F_24.02,r0070,c0050,})abs({F_24.02,r0040,c0040,}) >= abs({F_24.02,r0040,c0050,})abs({F_24.02,r0060,c0040,}) >= abs({F_24.02,r0060,c0050,})abs({F_24.02,r0010,c0040,}) >= abs({F_24.02,r0010,c0050,})abs({F_24.02,r0050,c0040,}) >= abs({F_24.02,r0050,c0050,})

And 1 more, the same formula for the other cells it covers.

Every FINREP 9 rule, by template

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