Question ID: 1584
Regulation Reference: Guidelines on recognition and valuation of assets and liabilities other than technical provisions
Topic: Other
Article: 75
Status: Final
Date of submission: 02 May 2018
Question
Can the valuation of tangible assets be used at the cost presented in the financial statements if the value of these assets is 0.2% of total assets, and the company does not apply IAS standards, and tangible assets concern several thousand items whose average value does not exceed EUR 500?
EIOPA answer
If the conditions for the derogation of Art. 9 (4) of the Delegated Regulation (EU) 2015/35 are met, the entity can use a valuation practice in accordance with Art. 75 of Directive 2009/138/EC other than IFRS. However, the valuation at cost does not appear to be a market-consistent approach and could only be used if it can be shown that the outcome of the valuation is in line with Art. 75 of Directive 2009/18/EC.