EBU Single Rulebook Q&A 4 March 2016 2016_2658 AVA calculation and tax effects

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European Union · · · 25-05-2017

Should Additional Value Adjustments (AVAs) be calculated net of tax effects for the purpose of the CET1 deduction in Article 34? Article 34 of CRR requires an adjustment to fair value, reflecting the uncertainty in a range of factors that make up that balance sheet value and ensuring (via deduction) that capital is provided for against this uncertainty.

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