300000000 QBE Capital Funding LP - Irish Stock Exchange

mentioned which could be of greater significance than the differences mentioned. We have no intention of
reconciling such financial statements or quantifying such differences in the future.
In making any investment decision in respect of the Capital Securities, you should rely on your own
examination of our financial information and should consult your own professional advisors for an understanding
of the differences between A-IFRS and US GAAP or historical Australian GAAP and US GAAP, and how those
differences might affect the financial information presented in this Offering Memorandum.
We record our transactions and prepare and will publish our consolidated financial statements in
Australian dollars. In this Offering Memorandum, references to “A$” or “$” are to Australian dollars, references
to “US$” or “US dollars” are to United States dollars and references to “£” are to pounds sterling.
Any discrepancies between totals and sums of components within tables contained in this Offering
Memorandum are due to rounding.
Summary of differences between AIFRS and IFRS impacting QBE
General insurance contracts
IFRS 4: Insurance Contracts and AASB 4: Insurance contracts address the definition of an insurance
contract and related disclosure requirements. There are no significant differences between these standards. IFRS
does not currently address the recognition and measurement of insurance contracts. Australian insurance
companies are required to apply the provisions of AASB 1023: General Insurance Contracts which sets out the
specific requirements for the recognition and measurement of insurance contracts.
Investments
AASB 1023 requires that all investments held to fund insurance provisions are measured in the balance
sheet at fair value with changes in fair value reflected in the income statement, provided this treatment is
permitted under AASB 139: Financial Instruments: Recognition and Measurement.
Companies reporting under IFRS are permitted to classify investments as either:
1. Financial assets held at fair value through profit or loss, subject to certain conditions;
2. Held to maturity (carried at amortised cost); or
3. Available for sale (carried at fair value with changes in fair value reflected directly in equity).
Such classification is subject to a company’s national standard setter’s potential requirement to classify
investments held to fund insurance provisions at fair value through profit and loss, such as in Australia.
10