Balance sheet: a total must equal the sum of its parts (S.02.01, EIOPA rule BV317_1)

The rule in plain words

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.

EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs two of them (BV317_1-3 and BV317_1-7), and a failure names the one that failed.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02Add up the parts in your return and compare the result with the total.
3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
4. 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
5. 05It runs only when your filing indicators mark S.02.01 as reported.
6. 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

A worked example

The first of its checks, with simple numbers.

Which returns it applies to

Line4 Check runs it on quarterly solo (QRS), quarterly group (QRG) and quarterly branch (QRB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to quarterly solo (QRS), quarterly group (QRG) and quarterly branch (QRB) returns, as a blocking check.

EIOPA’s own words and formula

In EIOPA’s list of validations, word for word:

The item "Investments (other than assets held for index-linked and unit-linked contracts)" reported in S.02.01 - Balance sheet must be equal to the sum of "Property (other than for own use)", "Holdings in related undertakings, including participations", "Equities", "Bonds", "Collective Investments Undertakings", "Derivatives", "Deposits other than cash equivalents", and "Other investments".

Other rules on Balance sheet (S.02.01)

Every Solvency II rule on S.02.01

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.