Q&A

Question

Whether the undertaking for leased assets (used for own purposes) can use valuation method consistent with annex to IFRS 16 regulation described in paragraphs 34 and 35? (COMMISSION REGULATION (EU) 2017/1986)
Does EIOPA expect that value of leased asset will by equal to liabilities connected to leasing contract (no impact for own funds)?

EIOPA answer

IFRS 16 needs to be applied in a way to reflect market-consistent valuation in line with Art. 75 of the Solvency II Directive (fair value).