BNP Paribas Bank Advisory Team, Corporate & Institutional Banking division
Yes, see enclosed document
As a pragmatic, workable compromise, 5-years would be much better than 2-years
Of the alternatives presented, prudential amortisation makes the most sense. It would have been nice at least to have appraised the option of full non-deduction
We cannot share data on this topic, nor do we express any “preference”. Our preferred option would be for software WIP to be fully capitalised and not deducted, with amortisation to commence upon delivery and extend for the full economic life of the operating software asset. However, we do not believe the EBA is considering this option at present.