(a) the life insurance undertaking has assigned a portfolio of assets, consisting of bonds and other assets with similar cash-flow characteristics, to cover the best estimate of the portfolio of life insurance obligations and maintains that assignment over the lifetime of the obligations, except for the purpose of maintaining the replication of cash-flows between assets and liabilities where the cash-flows have materially changed such as the default of a bond;

6. Notes the ESRB’s statement of views of 9 December 2011 containing its reservations as regards a financial indicator, in which it states that the scoreboard ‘should include short-term liabilities (the sum of liabilities maturing within one year) for the unconsolidated financial sector, net of bank deposits, as a share of total liabilities’ and that ‘this indicator should be preferred to indicators based on flow-of funds equity measures, such as leverage or gearing ratios, because since equity is estimated at market values it is very sensitive to movements of the stock market’; reminds the Commission that Article 4(5) of the MIP Regula ...[+++]tion stipulates that ‘the work of the ESRB shall be taken into due consideration in the drafting of indicators relevant to financial market stability’;

an interest rate swap with a remaining maturity of five years in a cash flow hedge of a variable rate financial asset or liability.

At the beginning of the financial period in which this Standard is first applied, any amount recognised outside profit or loss (in other comprehensive income or directly in equity) for a hedge of a firm commitment that under this Standard is accounted for as a fair value hedge shall be reclassified as an asset or liability, except for a hedge of foreign currency risk that continues to be treated as a cash flow hedge’.

An entity shall not adjust the carrying amount of non-financial assets and non-financial liabilities to exclude gains and losses related to cash flow hedges that were included in the carrying amount before the beginning of the financial year in which this Standard is first applied.

A credit analysis of the asset seller's risk profile shall be performed and shall include analysis of past and expected future financial performance, current market position, expected future competitiveness, leverage, cash flow, interest coverage and debt rating.