Our question relates to EBA validationrule v5713_s which, in our view, is not always applicable. This validation rule applies to the situation where a dividend distribution is done from "Capital"; the first column. In this situation the amount of dividend should be negative in c_010, r_110 of template F46.00. However, there can also be the situation that a stock dividend is converted from Share premium to Capital. In this situation there is a negative amount reported in the second column "Share premium" and there is an equal positive amount in the column "Capital" disclosed. The total change in equity is nil, but there is a shift from Share premium to Capital. In this situation should it be possible to report a positive amount in the column "Capital". Is our understanding correct ?

Changes in Equity should be presented on the same row, in this case "dividend" r_110 and it is not the same as "issuance of ordinary shares"

Stock dividends shall be recorded as an issuance of ordinary or preference shares, as needed, in row 050/060 in the FINREP template F46.00. Since the validation rule v5713_s does not apply to row 050/060, hence it is correct.
In the particular case mentioned above the movement should affect:
     • rows 050 “Issuance of ordinary shares” or 060 “Issuance of preference shares” ( as needed ), column 010 “capital” with positive value; and,
     • row 110 “Dividends”, column 20 “share premium” with negative value.