Balance sheet and own funds: values must agree (IR.02.01, IR.23.01, Bank of England rule IR_bv2014)

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.

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 IR.23.01 as reported.

The cells it reads

Which returns it applies to

Line4 Check runs it on quarterly solo (QRS) and annual solo (ARS) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to quarterly solo (QRS) and annual solo (ARS) 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 "Total" value of "Reconciliation reserve before deduction for participations" reported in the template IR.23.01.01.02 - Own funds should be equal to sum of the same item "Excess of assets over liabilities" less "Own shares (included as assets on the balance sheet" less "Foreseeable dividends, distributions and charges" less "Deductions for participations in financial and credit institutions" less "Other basic own fund items" less "Adjustment for restricted own fund items in respect of matching adjustment portfolios and ring fenced funds".

Other rules on Balance sheet (IR.02.01)

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.