NOTES TO THE
FINANCIAL STATEMENTS
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Insurance Australia Group Limited (IAG, Parent or Company) is a company limited by shares, incorporated and domiciled in Australia
whose shares are publicly traded on the Australian Securities Exchange (ASX). Its registered office and principal place of business is
Level 26, 388 George Street, Sydney, NSW 2000, Australia. This financial report is for the reporting year ended 30 June 2015 and the
consolidated financial statements are for the Company and its subsidiaries (Group or Consolidated entity). The Group is a for-profit
entity.
This general purpose financial report was authorised by the Board of Directors for issue on 21 August 2015.
A. STATEMENT OF COMPLIANCE
This general purpose financial report has been prepared in accordance with the Corporations Act 2001, Australian Accounting
Standards (AASB) adopted by the Australian Accounting Standards Board, other authoritative pronouncements of the Australian
Accounting Standards Board and the ASX Listing Rules.
International Financial Reporting Standards (IFRS) refer to the overall framework of standards and pronouncements approved by the
International Accounting Standards Board (IASB). IFRS forms the basis of the AASBs. This financial report of the Consolidated entity
complies with IFRS.
The current IFRS standard for insurance contracts does not include a comprehensive set of recognition and measurement criteria. The
IASB continues to work on a project to issue a standard that does include such criteria. Until the issuance of that standard, the
financial reports of insurers in different countries that comply with IFRS may not be comparable in terms of the recognition and
measurement of insurance contracts.
B. BASIS OF PREPARATION OF THE FINANCIAL REPORT
The significant accounting policies adopted in the preparation of this financial report are set out below. The accounting policies
adopted in the preparation of this financial report have been applied consistently by all entities in the Consolidated entity and are the
same as those applied for the previous reporting year unless otherwise noted. The financial statements have been prepared on the
basis of historical cost principles, as modified by certain exceptions noted in the financial report, with the principal exceptions for the
Consolidated entity being the measurement of all investments and derivatives at fair value and the measurement of the outstanding
claims liability and related reinsurance and other recoveries at present value.
The presentation currency used for the preparation of this financial report is Australian dollars.
The balance sheet is prepared using the liquidity format in which the assets and liabilities are presented broadly in order of liquidity.
The assets and liabilities comprise both current amounts (expected to be recovered or settled within 12 months after the reporting
date) and non-current amounts (expected to be recovered or settled more than 12 months after the reporting date). For those assets
and liabilities that comprise both current and non-current amounts, information regarding the amount of the item that is expected to
be outstanding longer than 12 months is included within the relevant note to the financial statements.
I. Australian Accounting Standards issued but not yet effective
As at the date of this financial report, there are a number of new and revised accounting standards published by the Australian
Accounting Standards Board for which the mandatory application dates fall after the end of this current reporting year.
None of these standards have been early adopted and applied in the current reporting year.
42 IAG ANNUAL REPORT 2015
