Once effective IFRS 16 will give rise to a right-of-use asset and a lease liability in respect of operating leases in our statutory balance sheet.
We presume that SII will follow IFRS recognition principles and apply SII valuation rules to the lease asset and liability. Is this correct and is any specific guidance anticipated?
Further, has it been considered how these assets and liabilities will be treated in the standard formula SCR?
At this point in time, we do not believe that any additional guidance in relation to IFRS 16 Leases is necessary. The recognition and valuation of balance sheet items according to IFRS 16 Leases fall under the requirements of Art. 16(4) of the Delegated Regulation (EU) 2015/55 and therewith can be assumed to be consistent with Art. 75 of the SII Directive.