The validation rule does not seem correct as the 'Adjustments to total own funds' (Template C 04.00, column 010, row 870) could also be of a negative value.
As stated in Article 500 Paragraph 4 the ‘amounts of own funds’ have to be ‘fully adjusted to reflect differences in the calculation of own funds under Directive 93/6/EEC and Directive 2000/12/EC as those Directives stood prior to 1 January 2007 and the calculation of own funds under this Regulation deriving from the separate treatments of expected loss and unexpected loss under Part Three, Title II, Chapter 3, of this Regulation.’
We think these differences could also result in ‘negative adjustments to total own funds’, e.g. the own funds after the adjustment are lower than the own funds before the adjustment.
According to Q&A 2014_1011, the content of row 870 of template C 04.00 of Annex I to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) is defined as difference between
i.e. as adjusted own funds less own funds according to CRR.
Following this calculation rule, the amounts reported in row 870 of template C 04.00 would be positive if the adjusted own funds are higher than the own funds according to CRR.
On the other hand, the figures reported in row 870 will be negative whenever the adjusted own funds are lower than the own funds according to CRR.
Therefore the reference to row 870 will be deleted in validation rule v3688_s.