{
  "url": "https://openlegislation.uk/eu-regulation-2016-101/annex",
  "json_url": "https://openlegislation.uk/eu-regulation-2016-101/annex.json",
  "legislation": "eur/2016/101",
  "legislation_title": "Commission Delegated Regulation (EU) 2016/101 of 26 October 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14) (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2016-101",
  "path": "annex",
  "kind": "annex",
  "number": null,
  "heading": "Formulae to be used for the purpose of aggregating AVAs under Article 9(6), Article 10(7) and Article 11(7)",
  "text": "Formula for Method 1\nAPVA\n=\n(FV – PV) – α · (FV – PV)\n= (1 – α) · (FV – PV)\nAVA\n=\nΣ APVA\nFormula for Method 2\nAPVA\n=\nmax {0, (FV – PV) – α · (EV – PV)}\n= max {0, FV – α · EV – (1 – α) · PV}\nAVA\n=\nΣ APVA\nWhere:\nFV The valuation exposure-level fair value after any accounting adjustment applied in the institution’s fair value that can be identified as addressing the same source of valuation uncertainty as the relevant AVA,\nPV The valuation exposure-level prudent value determined in accordance with this Regulation,\nEV The expected value at a valuation exposure level taken from a range of possible values,\nα The aggregation factor,\nAPVA The valuation exposure-level AVA after adjusting for aggregation,\nAVA The total category-level AVA after adjusting for aggregation.\nInstitutions shall set the aggregation factor ‘ α ’ at 66 % until 31 December 2020 , after which they shall set the aggregation factor at 50 %.’",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Substituted by Commission Delegated Regulation (EU) 2020/866 of 28 May 2020 amending Delegated Regulation (EU) 2016/101 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14) of Regulation (EU) No 575/2013 (Text with EEA relevance)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2016/101/annex",
    "retrieved_at": "2026-11-01T14:46:06.477546+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}