EBU Single Rulebook Q&A 8 December 2017 2017_3628 Clarification on application of incurred CVA to the Leverage Ratio Exposure calculation

Can incurred CVA, which is recognised as an incurred write-down in the Balance sheet, be used in the calculation of the Leverage Ratio Exposure for derivatives contracts? Incurred CVA is an accounting value adjustment that helps to ensure that the asset value and the capital of a firm are appropriately reduced to reflect the expected losses as a result of a counterparty’s credit quality.