PRA consults on Solvency 2 and accounting principles: PRA is consulting on compatibility of Solvency 2 with generally accepted accounting principles (GAAP). The consultation includes a draft supervisory statement for firms that are considering using the derogation in the Commission Delegated Regulation on Solvency 2 to value some assets and liabilities using local GAAP if they fulfil some specific criteria. The statement maps the derogation to UK GAAP and explains when firms will be able to use it. PRA asks for comments by 10 July. (Source: PRA Consults on Solvency 2 and Accounting Principles)