Annual Report 2012 - Swiss Life

133 Consolidated Financial Statements
addresses inconsistencies in the reporting of joint arrangements by requiring a single method to
account for interests in jointly controlled entities. IFRS 12 Disclosure of Interests in Other Entities
comprises all the disclosure requirements for all forms of interests in other entities, including joint
arrangements, associates, special purpose vehicles and other off balance sheet vehicles. IAS 27 has
been renamed ‘Separate Financial Statements’ and carries forward the existing accounting requirements
for separate financial statements. IAS 28 Investments in Associates and Joint Ventures has
been amended in line with the changes to the accounting for joint arrangements. The new and
amended standards will be effective for annual periods beginning on or after 1 January 2013. Due to
the consolidation of additional investment funds, total assets and liabilities increase by approx.
CHF 1.3 billion as at 1 January 2012.
In October 2010, the International Accounting Standards Board issued requirements on the accounting
for financial liabilities. These requirements are part of IFRS 9 Financial Instruments. The new
requirements address the problem of volatility in profit or loss arising from an issuer choosing to
measure its own debt at fair value. An entity choosing to measure a liability at fair value will present
the portion of the change in its fair value due to changes in the entity’s own credit risk in other comprehensive
income. IFRS 9 Financial Instruments applies to annual periods beginning on or after
1 January 2015. The Swiss Life Group is currently analysing the impact of these new requirements.
In November 2009, IFRS 9 Financial Instruments was issued by the International Accounting Standards
Board. The Standard represents the first part of a three-part project to replace IAS 39 Financial
Instruments: Recognition and Measurement. IFRS 9 Financial Instruments covers classification and
measurement of financial assets. The classification and measurement approach in IFRS 9 Financial
Instruments is based on how an entity manages its financial instruments (business model) and the
contractual cash flow characteristics of the financial assets. A financial asset is measured at amortised
cost or fair value. The Standard will be effective for annual periods beginning on or after 1 January
2015. The Swiss Life Group is currently analysing the impact of these changes on its financial
statements.
The following amended Standards and Interpretations are not relevant to the Swiss Life Group:
– Investment Entities (Amendments to IFRS 10, 12 and IAS 27)
– IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
– Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards
– Annual Improvements 2009-2011 Cycle
3 Critical Accounting Estimates and Judgements in Applying Accounting
Policies
Certain reported amounts of assets and liabilities are subject to estimates and assumptions. Estimates
and judgements by management are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
The sensitivity analysis with regard to insurance risk and market risk is set out in note 5.
Swiss Life – Annual Report 2012