EU COVID-19 ‘Quick Fix’ for software asset deductions in response to COVID-19 impacts
Time to review IFRS capitalisation policies?
The pressure placed by COVID-19 on European banks is well documented. To help ease that pressure, the European Union (EU) enacted emergency amendments to the EU Capital Requirements Regulation (CRR) known as the ‘CRR Quick Fix’ which include an end to the requirement to deduct the full value of software intangible assets from Common Equity Tier 1 (CET1) capital.
EU COVID-19 ‘Quick Fix’ for software asset deductions in response to COVID-19 impacts
EU banks and other financial institutions are no longer required to deduct the full value of software assets from CET1 capital
Deduction for software assets is now based on prudential accumulated amortisation, calculated with reference to amounts included on a bank’s balance sheet for accounting purposes
This publication summarizes the regulatory rules and accounting requirements to help bring clarity to the capitalisation framework. Download the PDF to read the entire article.
Christian has 15 years’ experience in servicing clients in audit and advisory and leads the Audit Advisory team at Deloitte Netherlands and the Complex Accounting Assurance community for Deloitte NSE. Using his audit background in an advisory role, Christian has set up Audit Advisory and is specialized in internal controls and accounting. Christian works with clients across various industries, both larger corporate and private companies as well as fast growing organizations. Christian has extensive experience leading NL GAAP, IFRS and US GAAP accounting advisory projects which includes supporting clients with accounting standards conversions and advising clients on complex accounting topics. Advisory experience also includes leading projects aimed at risk analysis and internal controls and finance maturity. Christian has a part-time function at Business Universiteit Nyenrode as a lecturer on Financial Accounting in the master curriculum of the Accountancy program.
Depuis plus de 20 ans, Maud accompagne les principaux acteurs du secteur financier et dispose d’une excellente expertise des problématiques comptables et financières. Elle a conduit de nombreux projets d’amélioration de processus métiers, de mise en conformité règlementaire et de transformation technologique. Membre des Instances de Direction de Deloitte en France, Maud est également responsable des activités Assurance pour le services financiers en France et responsable de l’Audit et de l’Assurance pour l’industrie des services financiers au niveau monde.