The rule in plain words
In each of "Current period: Intragroup transactions" (column 0010) and "Current period: Shared customer transactions" (column 0020) of Statement of profit or loss (SR02.00.03.01): "Total operating income, net" (row 0355) must equal "Interest income" (row 0010) minus "(Interest expenses)" (row 0090) minus "(Expenses on share capital repayable on demand)" (row 0150) plus "Dividend income" (row 0160) plus "Fee and commission income" (row 0200) minus "(Fee and commission expenses)" (row 0210) plus "Gains or (-) losses on financial assets liabilities not measured at fair value through profit or loss, net" (row 0220) plus "Gains or (-) losses on financial assets and liabilities held for trading, net" (row 0280) plus "Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net" (row 0287) plus "Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net" (row 0290) plus "Exchange differences [gain or (-) loss], net" (row 0310) plus "Gains or (-) losses on derecognition of non financial assets other than held for sale, net" (row 0330) plus "Other operating income" (row 0340) minus "(Other operating expenses)" (row 0350).
The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.
This is a blocking check. A return that fails it is normally rejected, so fix it before you submit. It runs only when your filing indicators mark SR02.00.03 as reported.
The cells it reads
Statement of profit or loss (SR02.00.03.01)
Rows
- R0010Interest income
- R0090(Interest expenses)
- R0150(Expenses on share capital repayable on demand)
- R0160Dividend income
- R0200Fee and commission income
- R0210(Fee and commission expenses)
- R0220Gains or (-) losses on financial assets liabilities not measured at fair value through profit or loss, net
- R0280Gains or (-) losses on financial assets and liabilities held for trading, net
- R0287Gains or (-) losses on non-trading financial assets mandatorily at fair value through profit or loss, net
- R0290Gains or (-) losses on financial assets and liabilities designated at fair value through profit or loss, net
- R0310Exchange differences [gain or (-) loss], net
- R0330Gains or (-) losses on derecognition of non financial assets other than held for sale, net
- R0340Other operating income
- R0350(Other operating expenses)
- R0355Total operating income, net
Columns
- C0010Current period: Intragroup transactions
- C0020Current period: Shared customer transactions
Which returns it applies to
Line4 Check runs it on the intragroup financial reporting (core) (RFB003) return on Bank of England banking taxonomy 4.1.1. The Bank of England applies it to intragroup financial reporting (core) (RFB003) returns, as a blocking check.
The Bank’s own words and formula
The plain words above spell out the Bank’s formula, with each cell named from its templates. In the Bank of England’s list of validations, word for word:
boe_v1699_m: T1: SR02.00.03.01; columns: {SR02.00.03.01, c0010;0020}; Expression: {SR02.00.03.01, r0355} = {SR02.00.03.01, r0010} - {SR02.00.03.01, r0090} - {SR02.00.03.01, r0150} + {SR02.00.03.01, r0160} + {SR02.00.03.01, r0200} - {SR02.00.03.01, r0210} + {SR02.00.03.01, r0220} + {SR02.00.03.01, r0280} + {SR02.00.03.01, r0287} + {SR02.00.03.01, r0290} + {SR02.00.03.01, r0310} + {SR02.00.03.01, r0330} + {SR02.00.03.01, r0340} - {SR02.00.03.01, r0350}
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: SR02.00.03.01, r: 0355} = {t: SR02.00.03.01, r: 0010} - {t: SR02.00.03.01, r: 0090} - {t: SR02.00.03.01, r: 0150} + {t: SR02.00.03.01, r: 0160} + {t: SR02.00.03.01, r: 0200} - {t: SR02.00.03.01, r: 0210} + {t: SR02.00.03.01, r: 0220} + {t: SR02.00.03.01, r: 0280} + {t: SR02.00.03.01, r: 0287} + {t: SR02.00.03.01, r: 0290} + {t: SR02.00.03.01, r: 0310} + {t: SR02.00.03.01, r: 0330} + {t: SR02.00.03.01, r: 0340} - {t: SR02.00.03.01, r: 0350}Where it applies, in the Bank's words (its scope):
scope({t: SR02.00.03.01, c: 0010; 0020, seq: False, f: banking, fv: structural_reform})Other rules on Statement of profit or loss (SR02.00.03.01)
- Statement of profit or loss: a total must equal the sum of its parts (boe_v0795_m)Blocking
- Statement of profit or loss: a total must equal the sum of its parts (boe_v0793_m)Blocking
- "(Provisions or (-) reversal of provisions)" must equal the sum of "(Commitments and guarantees given)" and "(Other provisions)" (boe_v0792_m)Blocking
- Statement of profit or loss: a total must equal the sum of its parts (boe_v0790_m)Blocking
- Statement of profit or loss: a total must equal the sum of its parts (boe_v0789_m)Blocking
- Statement of profit or loss: "(Interest expenses)" must equal the sum of 5 rows (boe_v0788_m)Blocking
- Statement of profit or loss: "Interest income" must equal the sum of 7 rows (boe_v0787_m)Blocking
- Statement of profit or loss: "(Administrative expenses)" must equal the sum of "(Other administrative expenses)" and "(Staff expenses)" (boe_v0141_h)Blocking
Every PRA banking rule on SR02.00.03.01
Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.