D.3.7 Payables (trade, not insurance)
De-recognition of the EU-IFRS value of D&A entities
and change in approach for joint ventures
The de-recognition of the
EU-IFRS value of D&A entities, OFS entities and IFRS-SII presentational differences of joint ventures generates an aggregation difference of EUR (6,120) million.
Method of valuation under Solvency II
A fair value approach is prescribed, excluding the effect of changes in Aegons own credit spread after initial recognition.
Material difference in valuation between Solvency II and EU-IFRS
For the differences in bases, methods and main assumptions used for valuation for solvency purposes and its valuation in Aegons EU-IFRS financial statements of the payables (trade, not insurance), please refer to section D.3.4 Debts owed to credit institutions.
Reclassification adjustments
The total
reclassification adjustment of EUR 329 million is mostly related to the reclassification of Any other liabilities to Payables (trade, not insurance) of EUR 319 million for the US
non-regulated entities, and EUR 175 million from Aegon UK in relation to Lease liabilities (IFRS16), partly offset by EUR (94) million from Aegon the Netherlands due to reclassification with
Receivables (trade, not insurance), and by EUR (82) million from Aegon Assets Management due to reclassification with Cash and cash equivalents.
Revaluation adjustments
The revaluation adjustments are not material.
D.3.8 Subordinated liabilities
De-recognition of the EU-IFRS value of D&A entities and change in approach for joint ventures
The de-recognition of the EU-IFRS value of D&A entities, OFS entities and IFRS-SII presentational differences of joint ventures generates an aggregation difference of EUR (924) million.
Method of valuation under Solvency II
A fair value approach is prescribed, excluding the effect of changes in Aegons
own credit spread after initial recognition. On the Solvency II Balance Sheet subordinated liabilities are reported on the liabilities side under subordinated liabilities, also when it is accounted for as equity under IFRS.
Material difference in valuation between Solvency II and EU-IFRS
Subordinated liabilities presented in subordinated borrowings and trust pass-through securities are considered financial liabilities and
valued at amortized cost or fair value. If valued at fair value, the discount rates also consider Aegons own credit spread.
For the differences in
bases, methods and main assumptions used for valuation for solvency purposes and its valuation in Aegons IFRS financial statements of the subordinated liabilities, please refer to section D.3.4 Debts owed to credit institutions.
Reclassification adjustments
The
reclassification adjustment of EUR 3,295 million mainly relates to the reclassification of grandfathered subordinated liabilities including: perpetual contingent convertible securities, junior perpetual capital securities and perpetual capital
subordinated bonds, which are presented as Equity on Aegons EU-IFRS balance sheet, to Subordinated liabilities on the Solvency II balance sheet, accompanied by accrued interest reclassified
from other liabilities and Trust Pass Through Securities broke out from the line Debts owed to credit institutions.
Revaluation adjustments
The total
revaluation adjustments for an amount of EUR 188 million were the result from applying the current interest rate and the fair value approach under Solvency II as compared to the amortized cost approach under
EU-IFRS.
D.3.9 Any other liabilities
De-recognition of the EU-IFRS value of D&A entities
and change in approach for joint ventures
The de-recognition of the
EU-IFRS value of D&A entities, OFS entities and IFRS-SII presentational differences of joint ventures generates an aggregation difference of EUR 1,184 million.
Method of valuation under Solvency II
A fair value approach is prescribed, excluding the effect of changes in Aegons credit spread since initial recognition.