EIOPA · 2772
Valuation of Assets and Liabilities other than TPs
- Regulation
- (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision
- Article
- N/A
- Topic
- Valuation of Assets and Liabilities other than TPs
- Submitted
- 2023-08-29
- Answered
- 2023-09-05
Question
Should a firm move dividends from foreseeable dividends to liabilities once approved by the Board or when they are actually paid?
Background
The majority of our firms report foreseeable dividends until the dividend has been paid but one firm classified the dividend as a liability from when the Board approved the dividend payment. There is no impact on solvency position as both foreseeable dividends and other liabilities reduce own funds but we would like confirm the correct classifcation to have consistent treatment from all of our firms.
Answer
Please note that the instructions of S.23.01 regarding the treatment of foreseeable dividend is clarified in the COMMISSION IMPLEMENTING REGULATION (EU) 2023/894. According to it “The dividend shall be reported as foreseeable until it has been approved at the annual general meeting (not until it has been paid).”.
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.
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