Solvency II was established as a direct response to the global financial crisis in 2008 in Europe with the underlying objective to harmonize regulations and strengthen the financial system to make it more resistent to shocks. Some of the features of Solvency II includes all of the following EXCEPT: a. The consistent valuation of assets and liabilities at market value. b. New reporting and disclosure measures to enhance transparency and increase good corporate governance. c. The inclusion of three levels of capital including earnings surplus and common stock as tier 1. d. The introduction of a minimum capital requirement and a minimum fixed income reserve financial institutions should keep to minimize risk.
Solvency II was established as a direct response to the global financial crisis in 2008 in Europe with the underlying objective to harmonize regulations and strengthen the financial system to make it more resistent to shocks. Some of the features of Solvency II includes all of the following EXCEPT: a. The consistent valuation of assets and liabilities at market value. b. New reporting and disclosure measures to enhance transparency and increase good corporate governance. c. The inclusion of three levels of capital including earnings surplus and common stock as tier 1. d. The introduction of a minimum capital requirement and a minimum fixed income reserve financial institutions should keep to minimize risk.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 59RSCQ
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Solvency II was established as a direct response to the global financial crisis in 2008 in Europe with the underlying objective to harmonize regulations and strengthen the financial system to make it more resistent to shocks. Some of the features of Solvency II includes all of the following EXCEPT:
a.
The consistent valuation of assets and liabilities at market value.
b.
New reporting and disclosure measures to enhance transparency and increase good corporate governance.
c.
The inclusion of three levels of capital including earnings surplus and common stock as tier 1.
d.
The introduction of a minimum capital requirement and a minimum fixed income reserve financial institutions should keep to minimize risk.
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