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Analysis:
Analysis
07 Jul 2021
2 minute read

EU COVID-19 ‘Quick Fix’ for software asset deductions in response to COVID-19 impacts

Time to review IFRS capitalization 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.

Audit-intangible-assets-assurance-pov-june-28-2021.pdf
5 MB PDF

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 amortization, 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 capitalization framework. Download the PDF to read the entire article.

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Christian Bout

Deloitte - Netherlands
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.
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