On 28 August 2015, the PRA published a supervisory statement (SS38/15) on the consistency of UK generally accepted accounting principles (GAAP) with Solvency II.  The PRA reminds firms that Solvency II permits them to recognise and value assets and liabilities under UK GAAP if certain conditions are adhered to.   Firms wishing to avail of this flexibility must provide evidence to the PRA in advance of doing so.  To assist firms, the PRA has listed the UK GAAP treatments which, in its view, are compatible with Article 75 of Solvency II (i.e. one of the conditions mentioned above).