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This chapter analyses the interdependencies, commonalities, and differences between accounting and regulatory requirements with regard to consolidation, the determination of own funds, and credit risk modelling under the International Financial Reporting Standards (IFRS 9) as well as within the Internal Ratings Based Approach. Parent institutions in a member state are supervised on a consolidated basis and are therefore in principle obliged to apply the CRR II framework on individual as well as consolidated basis. However, the scope of prudential consolidation may deviate from the IFRS or local-GAAP (General Accepted Accounting Principles) consolidation, as the prudential consolidation often narrows the circle of consolidated entities down to the entities relevant for prudential supervision, with the exclusion of ‘non-financial businesses’. The chapter then provides an answer to the question of the extent to which different accounting regulations under different accounting standards or the exercise of options have an impact on capital ratios. It also shows to what extent regulatory requirements encourage institutions to exercise accounting discretion or influence the exercise of options. Finally, the chapter assesses the extent to which supervisory regulations can be incorporated into the balance sheet in order to achieve a parallelism between accounting and supervisory law.