Financial and capital market Commission, the provisions of regulations No 48 2016 in Riga on March 2 (financial and capital market Commission Council meeting Protocol No 10 3. p.) "The amendments to the insurer and reinsurer solvency capital requirements and regulations for the calculation of the own funds regulations ' Issued in accordance with the insurance and reinsurance law article 118 article 119 and eighth draw financial and capital market Commission of 12 august 2015 legislative provisions no 130" Insured and the reinsurer solvency capital requirements and the calculation of the own funds regulations "(hereinafter-the rules) the following amendments: 1. Add to paragraph 1, after the words" to be used in the calculation of own funds of the order "with a comma and the words" as well as assets and liabilities, except for the technical provisions, solvency valuation purposes ". 2. To supplement the provisions of this chapter with the I1: "1. Assets and liabilities, except for the technical provisions, valuation and assessment grounds 3.1 the insurer or reinsurer of assets and liabilities, except for the valuation of technical provisions (hereinafter referred to as the valuation of assets and liabilities) the solvency calculation, which includes the solvency capital requirement, minimum capital requirements and own funds calculation is carried out in accordance with the delegated regulation of the European Commission (EU) 2015/35 (2014 October 10) complementary to the European Parliament and Council directive 2009/138/EC relating to the taking-up and pursuit of the business of insurance and reinsurance (Solvency II) (hereinafter – EU Regulation No 2015/35) in chapter II of title I requirements and referred to in this chapter. 3.2 the insurer or reinsurer of the valuation of assets and liabilities apply materiality principle in accordance with the EU Regulation No 2015/1 referred to in recital 35. Applying the principle of materiality, the quarterly data for calculation of solvency assessment on estimates and projections methods can rely to a greater extent than the solvency calculation data of the year of assessment in the light of the international accounting standard 34 "interim financial reporting", 23.-25. above. 3.3 the insurer or reinsurer assessment methods are applied consistently. While the insurer or reinsurer shall assess whether, in the light of 13. international financial reporting standards "of fair value" referred to in paragraph 65 of the changes, there is no need to make changes to the valuation method or application to ranking would be adequate insurance and reinsurance law in article 98. 3.4 If the insurer or reinsurer subject to EU Regulation No 2015/35 the evaluation referred to in article 10 of the hierarchy, choose to apply alternative methods of valuation of investment property and intangible assets for its own operation, evaluation, it is chosen by EU Regulation No 2015/35 article 10, paragraph 7, the method gives the best estimate of the value at which an asset could be exchanged, well informed, and interested parties of unrelated transactions. The application of alternative methods of valuation in accordance with the EU Regulation No 2015/35 paragraph 6 of article 10, an insurer or reinsurer shall assess the information from various sources in accordance with the international accounting standard "investment property" in paragraph 46 above. 3.5 rules in individual cases, of the information referred to in point 3.4 use can get a different property value assessments. The insurer or reinsurer critically evaluate these reasons and determine the most probable value of the property assessment estimated range. 3.6 the insurer or reinsurer, determining the tangible assets intended for the same activity, the value taken into account in its ability to use a tangible asset in its broadest and best use or selling it to another market participant that the tangible assets used in the widest and best use, under 13. International financial reporting standard "fair value". 3.7 if the investment property and intangible assets for the same activity, an estimate of the value of reporting date based on an independent real estate appraiser to prepare an assessment or other information obtained before the reporting date, the insurer or reinsurer shall document and store the evidence that has made all the necessary adjustments to take account of changes in the value of what took place during the period between the date of the assessment or other information date and the date of preparation of the report or justify that adjustment is not required, for example, if the rating or other information acquisition date difference from the date on which the report is small. 2.4 financial obligations shall apply to the evaluation of the EU Regulation No 2015/35 article 14, paragraph 1, i.e., use methods which result in the value of liabilities or arrange for the transfer of well informed, engaged and non arm's length, and does not adjust for changes to the insurer's or reinsurer's own EIB (own credit standing) financial liabilities at initial recognition. The insurer or reinsurer shall determine the fair value of financial liabilities in accordance with EU Regulation No 2015/35 article 9, paragraph 1, and after initial recognition off further value adjustments related to changes in the same of the insurer or reinsurer EIB. In determining the amount of change in fair value attributable to own credit risk, one of the 7. international financial reporting standards "financial instruments: disclosure" referred to in paragraph 10. 3.9 If the insurer or reinsurer valued participation in share capital of the company related to the application of the equity method in accordance with the EU Regulation No 2015/35 paragraph 1 of article 9 and article 13, paragraph 5, and the related accounting for the sort of society apply different accounting principles (not apply international financial reporting standards), then the calculation of the solvency of the insurer or reinsurer needs adjustments for such related public assets and liabilities in accordance with international financial reporting standards. 3.10 if application of EU Regulation No 2015/35 article 13, paragraph 5 of the insurer or reinsurer not carries out the related assets and liabilities of the public value of the calculation according to EU Regulation No 2015/35 article 13, paragraph 4, it shall document and store the grounds for it are not made. 3.11 if the insurer or reinsurer valued participation in share capital of the company, associated with alternative methods of valuation in accordance with the EU Regulation No 2015/36 Article 13, paragraph 1 (c)), it shall document and store the reasons why it is not possible to reassess the related assets and liabilities of the company, using a standard scoring method or adjust the equity method. 3.12 when closing a deal that the insurer or reinsurer raises additional equity item (Tools), it is considering whether to declare the relevant potential obligations as obligations under the EU Regulation No 2015/35 article 11. The potential liabilities of the insurer or take into account any available forecasts for reinsurers may cash flows, and the risk that the actual cash outflows can be larger and different from the projected. The insurer or reinsurer shall document and store the reasons, if not recognised contingent liabilities in circumstances where an agreement has been concluded with another company, t.sk. with other groups, and the public on this agreement, the insurer or reinsurer is getting the Commission's permission to include it in the calculation of own funds as additional equity. 3.13 deferred tax recognition and valuation of the insurer or reinsurer shall be carried out in accordance with EU Regulation No 2015/35 article 15, taking into account the following: 3.131. deferred tax assets and deferred tax liabilities is not discounting the solvency is calculated; 3.132. deferred tax assets and deferred tax liabilities are included only where the insurer or reinsurer shall have the legal right to make a reasonable current tax assets including against current tax liabilities and when the deferred tax assets and deferred tax liabilities relate to the insurer or reinsurer an amount of income tax collection, which is administered by the same tax authority; 3.133. If the insurer or reinsurer with a taxable temporary difference is insufficient, then the deferred tax asset is recognised, in the light of international accounting standard 12 "income taxes") (a) of paragraph 29 referred to conditions; 3.134. in developing the taxable profit projections and assessing the likelihood that sufficient future taxable profit, insurers or reinsurers: 3.134.1. Note that even steady income history does not provide sufficient objective evidence for future profit, 3.134.2. Note that the uncertainty as regards the degree of expected future taxable profit depends on the expected increase in the volume of insurance transactions when the forecast period increases, and the projected returns are expected in the periods that exceed the normal activity of the insurer or reinsurer's planning cycle, 3.134.3. assess the possibility that changes in the tax laws may prevent or restrict the unused tax losses and unused tax credits return 3.134.4. avoid double-counting, i.e. taxable profits arising in the taxable temporary difference reversals result, excluded from the expected taxable future profits, if it has been used to justify the recognition of deferred tax assets, 3.134.5. provides that taxable profit forecasts, they are both plausible and consistent with the assumptions included in the forecasts. Forecasting the underlying assumptions in particular are matched with the needs of the solvency calculation accounts prepared the technical provisions and assets items of assessment of underlying assumptions. 3.14 the provisions referred to in paragraph 3.13 of the insurer or reinsurer evaluation shall document and store the evidence that contains at least the following information: 3.141. temporary differences, which can lead to the recognition of deferred taxes; 3142. deferred tax recognition and valuation principles; 3.143. recognised deferred tax asset or deferred tax liabilities amount calculation and its underlying assumptions of each type of temporary difference, i.e. taxable temporary difference and deductible temporary differences, and for each of the unused tax losses and unused tax credits; 3.144. Description of deferred tax assets, which includes at least the following: 3.144.1. information whether the insurer or reinsurer has taxable temporary differences related to income tax, which is levied is administered by the same tax authority, and that reversal expected in the same reference period when the deductible temporary differences are expected to reverse, or which will result in taxable amounts against which you can use the unused tax losses or unused tax credits before the expiry of the time limit, if the insurer or reinsurer 3.144.2. has sufficient taxable temporary differences relating to the income tax, which is levied is administered by the same tax authority, evidence in support of an insurer or reinsurer will have sufficient taxable profit in the same period, which reversed the deductible temporary differences, or reporting periods in which the tax loss arising from the deferred tax asset transfer to the previous or next reference periods, or there is the possibility that an insurer or a reinsurer will have taxable profits before the unused tax losses or unused tax credits expire; 3.145. deductible temporary differences, unused tax losses and unused tax credits, whether or not recognised deferred tax assets, and their expiration dates. 3.15 if participation in related public-are excluded from the group under the supervision of insurance and reinsurance law 199 of the first part of the article, the insurer or reinsurer shall apply the following principles, recognising deferred tax: 3.151. where participation in related public-are excluded from the group under the supervision of insurance and reinsurance law in article 199, first paragraph, point 1, the deferred tax relating to this off the company, not the individual need not be recognised , not the group level; 3.152. where participation in related public-are excluded from the group under the supervision of insurance and reinsurance law article 199, first paragraph, point 2 or 3, the deferred tax relating to this excluded the public, should not be recognised at the group level. " 3. Express the point 8 the second sentence by the following: "Risk in the design of the module takes into account the impact of diversification according to the EU Regulation No 2015/35 requirements." 4. Make the informative reference to European Union directives as follows: "informative reference to European Union rules, the rules included provisions resulting from: 1. European Parliament and Council directive 2009/138/EC relating to the taking-up and pursuit of the business of insurance and reinsurance (Solvency II); 2. the Committee of European insurance and occupational pensions authority guidelines EIOP-Bo-15/113 EN "guidelines on assets and liabilities that are not technical provisions, recognition and measurement". " Financial and capital market Commission President p. Bird