Question
There are a number of sign validation rules which are applied to the FINREP templates. Are all of them correct and shall be strictly adhered to? For example, rule v3897_s requires that all items in template F 01.01 (FINREP) are greater or equal to 0. This validation may not be applicable for some of the items in template F 01.01, such as row 250 – 'Fair Value changes of the hedged items in portfolio hedge of interest rate risk'. As this item (row 250) may be a contra-asset account (i.e. reducing the total assets balance), shall it nevertheless be reported as a positive number (as required by the validation rule)?
Background on the question
There are a number of sign validation rules which are applied to the FINREP templates. Are all of them correct and shall be strictly adhered to? For example, rule v3897_s requires that all items in template F 01.01 (FINREP) are greater or equal to 0. This validation may not be applicable for some of the items in template F 01.01, such as row 250 – 'Fair Value changes of the hedged items in portfolio hedge of interest rate risk'. As this item (row 250) may be a contra-asset account (i.e. reducing the total assets balance), shall it nevertheless be reported as a positive number (as required by the validation rule)?
Answer
The assessment is correct, row 250 of template F 01.01 of Annexes III and IV of Regulation (EU) No. 680/2014 (ITS on Supervisory Reporting) may contain both positive and negative figures. The same applies to row 250 of template F 17.01, row 250 of template F 20.01, row 160 of template F 01.02, row 160 of template F 17.03 and row 160 of template F 20.02 of Annexes III and IV. Accordingly, the validation rules v3897_s, v3957_s, v3960_s, v3898_s, v3959_s and v3961_s which are already deactivated and would prevent the reporting of negative values in the respective cells will be amended.