The rule in plain words
The item "Investments (other than assets held for index-linked and unit-linked contracts)" reported in Balance sheet (IR.02.01.01.01) should 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"
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 table 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- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.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 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
- R0070Investments (other than assets held for index-linked and unit-linked contracts)
- R0080Property (other than for own use)
- R0090Holdings in related undertakings, including participations
- R0100Equities
- R0130Bonds
- R0180Collective Investments Undertakings
- R0190Derivatives
- R0200Deposits other than cash equivalents
- R0210Other investments
Column
- C0020Statutory accounts value
A worked example
With simple numbers.
Investments (other than assets held for index-linked and unit-linked contracts) must then be 3,100.
A file that reports 3,100 passes. One that reports 3,200 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 "Investments (other than assets held for index-linked and unit-linked contracts)" reported in IR.02.01.01.01 - Balance sheet should 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".
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: R0070, c: C0020} = {t: IR.02.01.01.01, r: R0080, c: C0020} + {t: IR.02.01.01.01, r: R0090, c: C0020} + {t: IR.02.01.01.01, r: R0100, c: C0020} + {t: IR.02.01.01.01, r: R0130, c: C0020} + {t: IR.02.01.01.01, r: R0180, c: C0020} + {t: IR.02.01.01.01, r: R0190, c: C0020} + {t: IR.02.01.01.01, r: R0200, c: C0020} + {t: IR.02.01.01.01, r: R0210, c: C0020}Other rules on Balance sheet (IR.02.01)
- Balance sheet: a total must equal the sum of its parts (IR_bv0604_02)Blocking
- Balance sheet and assets and liabilities by currency: a total must equal the sum of its parts (IR_bv0603)Blocking
- The item "Cash and cash equivalents" reported in Balance sheet should be positive (IR_bv0605_01)
- The item "Cash and cash equivalents" reported in Balance sheet should be positive (IR_bv0605_02)
- The item "Cash and cash equivalents" reported in Balance sheet should be positive (IR_bv0605_03)
- 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)
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.