BANK 3.2.21 Approaches to valuation and adjustment

(1) A banking business firm must use the same approach for valuing regulatory adjustments to its capital as it does for balance-sheet valuations. An item that is deducted from capital must be valued in the same way as it would be for inclusion in the firm’s balance sheet.
(2) The firm must use the corresponding deduction approach and the threshold deduction rule in making adjustments to its capital.
Derived from QFCRA RM/2014-2 (as from 1st January 2015).