Question ID: 1944
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Topic: Own Funds (OF)
Article: 75(34 & 35)
Status: Final
Date of submission: 03 Jun 2019
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).