Question
The v4811_m validation rule states that the control checks that the sum of IRB shortfall (-) of specific credit risk adjustments to expected losses (both defaulted and non defaulted exposures) in the C04.00 template (rows 0100 and 0145) must be equal to the row 0380 in template C01.00 - Own funds. Both factors of the formula, as described in the Instructions, do not cover the same scope and cannot be equal.
Background on the question
This rule cannot be validated because both factors of the formula are not covering the same scope. According to the Instructions, the cell 0380 in template C01 - own fund covers the whole scope of expected loss amounts including equity exposures. For the amounts collected in CA4 file rows 0100 and 0145, Instructions refer to expected losses eligible excluding points 7, 8 and 9 of article 158 CRR, meaning equity exposures are excluded.
Answer
This question has been rejected because the issue it deals with is already explained or addressed in Sections 1.2.1 and 1.5.1 of Part II of Annex II to Commission Implementing Regulation (EU) 2021/451.For further information on the purpose of this tool and on how to submit questions, please see 'Additional background and guidance for asking questions'.