EIOPA · 1336
Solvency Capital Requirement (SCR)
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
- Article
- 75
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2017-06-12
- Answered
- 2020-03-02
Question
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?
Answer
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.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
Similar Q&As
More Q&As on this topic
📋 Track EU financial regulation continuously
Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.
14-day free trial. No credit card required.