The rule in plain words
The item "Other assets: Property, plant & equipment held for own use, Cash and cash equivalents, Loans on policies, Loans & mortgages to individuals and Other loans & mortgages (other than index-linked and unit-linked contracts)" reported in template Balance Sheet (IR.02.01) should be equal to sum of the same items in template Assets and liabilities by currency (IR.02.02)
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.
What to do if your return fails it
- 01Open the tables below and find the cells the rule reads.
- 02Add up the parts in your return and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark IR.02.01 and IR.02.02 as reported.
- 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Balance sheet (IR.02.01.01.01)
Rows
- R0060Property, plant & equipment held for own use
- R0240Loans on policies
- R0250Loans and mortgages to individuals
- R0260Other loans and mortgages
- R0410Cash and cash equivalents
Column
- C0010Solvency II value
Assets and liabilities by currency: all currencies (IR.02.02.01.01)
Row
- R0030Other assets: Property, plant & equipment held for own use, Cash and cash equivalents, Loans on policies, Loans & mortgages to individuals and Other loans & mortgages (other than index-linked and unit-linked contracts)
Column
- C0020Total value of all currencies
A worked example
With simple numbers.
Other assets: Property, plant & equipment held for own use, Cash and cash equivalents, Loans on policies, Loans & mortgages to individuals and Other loans & mortgages (other than index-linked and unit-linked contracts), Total value of all currencies must then be 2,900.
A file that reports 2,900 passes. One that reports 3,000 fails, by 100.
The numbers are illustrative, reported to the unit, so the rounding tolerance does not change the result.
Which returns it applies to
Line4 Check runs it on annual solo (ARS) and annual group (ARG) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual solo (ARS) and annual group (ARG) returns, as a blocking check.
The Bank’s own words and formula
In the Bank of England’s list of validations, word for word:
The item "Other assets: Property, plant & equipment held for own use, Cash and cash equivalents, Loans on policies, Loans & mortgages to individuals and Other loans & mortgages (other than index-linked and unit-linked contracts)" reported in template IR.02.01 - Balance Sheet should be equal to sum of the same items in template IR.02.02 - Assets and liabilities by currency.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
{t: IR.02.01.01.01, r: R0060, c: C0010} + {t: IR.02.01.01.01, r: R0410, c: C0010} + {t: IR.02.01.01.01, r: R0240, c: C0010} + {t: IR.02.01.01.01, r: R0250, c: C0010} + {t: IR.02.01.01.01, r: R0260, c: C0010} = {t: IR.02.02.01.01, r: R0030, c: C0020, z: Z0001}Other rules on Balance sheet (IR.02.01)
- The item "Total liabilities" reported in Balance sheet should be positive (IR_bv0602_01)
- The item "Total liabilities" reported in Balance sheet should be positive (IR_bv0602_02)
- The item "Total liabilities" reported in Balance sheet should be positive (IR_bv0602_03)
- Balance sheet: a total must equal the sum of its parts (IR_bv0604_01)Blocking
- Balance sheet: a total must equal the sum of its parts (IR_bv0604_02)Blocking
- The item "Total assets" reported in Balance sheet should be positive (IR_bv0601_01)
- The item "Total assets" reported in Balance sheet should be positive (IR_bv0601_02)
- The item "Total assets" reported in Balance sheet should be positive (IR_bv0601_03)
Every Solvency UK rule on IR.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.