talanx group annual report 2011 en
talanx group annual report 2011 en
talanx group annual report 2011 en
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Nature of risks Notes on the balance<br />
sheet – assets<br />
Notes on the balance<br />
sheet – liabilities<br />
Notes on the<br />
statem<strong>en</strong>t of income<br />
Other information List of shareholdings<br />
Realisability of deferred tax assets: Estimates are made in particular with respect to the utilisation<br />
of tax loss carry-forwards, first and foremost in connection with deferred tax liabilities recognised<br />
in the balance sheet and expected future earnings. The Group’s deferred tax assets amounted to<br />
EUR 320 million at the balance sheet date.<br />
Provisions for p<strong>en</strong>sions and similar obligations: At the balance sheet date, the Group posted p<strong>en</strong>sion<br />
obligations under defined-b<strong>en</strong>efit plans – net of plan assets – of EUR 1,343 million. The pres<strong>en</strong>t<br />
value of p<strong>en</strong>sion obligations is influ<strong>en</strong>ced by numerous factors based on actuarial assumptions.<br />
The assumptions used to calculate the net exp<strong>en</strong>ses (and income) for p<strong>en</strong>sions include discount<br />
rates, inflation rates and expected returns on plan assets. These parameters take into account the<br />
individual circumstances of the units concerned and are determined with the aid of actuaries. Further<br />
key assumptions used to establish the p<strong>en</strong>sion liabilities are provided in item 22 “Provisions for<br />
p<strong>en</strong>sions and other post-employm<strong>en</strong>t b<strong>en</strong>efit obligations” of these Notes.<br />
Provisions for restructuring (31 December <strong>2011</strong>: EUR 87 million): The provisions for restructuring<br />
recognised in the consolidated financial statem<strong>en</strong>ts, which are based on official restructuring measures<br />
of which the affected employees have be<strong>en</strong> informed, include assumptions in respect of the<br />
amount of the severance paym<strong>en</strong>ts due and the implications for onerous contracts.<br />
The actual amounts may diverge from the estimated amounts.<br />
Summary of major accounting policies<br />
Recognition of insurance contracts<br />
In March 2004 the IASB published IFRS 4 “Insurance Contracts,” the first standard governing the<br />
accounting of insurance contracts, and thus divided the “Insurance Contracts” project into two<br />
phases. IFRS 4 repres<strong>en</strong>ts the outcome of Phase 1 and serves as a transitional arrangem<strong>en</strong>t until the<br />
IASB redefines the measurem<strong>en</strong>t of insurance contracts after completion of Phase 2. The exposure<br />
draft (ED/2010/8) “Insurance Contracts” has now be<strong>en</strong> published. It is still to be decided whether<br />
the proposed am<strong>en</strong>dm<strong>en</strong>ts to the exposure draft – which are due to appear in the third or fourth<br />
quarter of 2012 – will be published in the form of a “re-exposure” (i.e. republication of an am<strong>en</strong>ded<br />
draft) or merely as a “review draft” (i.e. a provisional draft of the final am<strong>en</strong>dm<strong>en</strong>t).<br />
IFRS 4 (Phase 1) – which also applies to reinsurance contracts – requires that all contracts writt<strong>en</strong> by<br />
insurance companies be classified either as insurance contracts or investm<strong>en</strong>t contracts. An insurance<br />
contract exists if one party (the insurer) assumes a significant insurance risk from another<br />
party (the policyholder) by agreeing to pay the policyholder comp<strong>en</strong>sation if a defined uncertain<br />
future ev<strong>en</strong>t detrim<strong>en</strong>tally impacts the policyholder. For the purposes of recognising insurance contracts<br />
within the meaning of IFRS 4, insurance companies are permitted to retain their previously<br />
used accounting practice for insurance contracts for the duration of the curr<strong>en</strong>tly applicable project<br />
stage (Phase 1). In line with this, technical items are recognised in the consolidated financial statem<strong>en</strong>ts<br />
in accordance with US GAAP (in ess<strong>en</strong>ce with the FASB ASC standard 944 et seq.). Contracts<br />
void of technical risk are treated as investm<strong>en</strong>t contracts in accordance with IFRS 4. If investm<strong>en</strong>t<br />
contracts contain a clause with discretionary surplus distribution, they are also recognised in accordance<br />
with US GAAP – provided IFRS 4 contains no special provisions to the contrary. Investm<strong>en</strong>t<br />
contracts that do not have discretionary surplus distribution are treated as financial instrum<strong>en</strong>ts<br />
pursuant to IAS 39.<br />
Talanx Group. Annual Report <strong>2011</strong><br />
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