2 Summary of Significant Accounting Policies

The half-year financial statements are prepared in accordance with IAS 34 Interim Financial Reporting. The accounting policies used in the preparation of the interim financial statements are consistent with those used in the financial statements for the year ended 31 December 2011, except for the changes in accounting policies as described below.

These interim financial statements should be read in conjunction with the 2011 annual financial statements.

Changes in accounting policies — In December 2010, an amendment to IAS 12 Income Taxes was issued by the International Accounting Standards Board. The amendment is set out in Deferred Tax: Recovery of Underlying Assets. It can be difficult and subjective to assess whether recovery will be through use or through sale when the asset is measured using the fair value model in IAS 40 Investment Property. The amendment provides a practical solution to the problem by introducing a presumption that recovery of the carrying amount will normally be through sale. The amendment applies to annual periods beginning on or after 1 January 2012. These amendments currently have no impact on the Group’s consolidated financial statements.

In October 2010, amendments to IFRS 7 Financial Instruments: Disclosures were issued. The amendments will allow users of financial statements to improve their understanding of transfer transactions of financial assets (for example securitisations), including understanding the possible effects of any risks that may remain with the entity that transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfer transactions are undertaken around the end of a reporting period. The amendments apply to annual periods beginning on or after 1 July 2011. The Swiss Life Group is currently not impacted by these amendments.

Related Party Transactions — Transactions with subsidiaries have been eliminated on consolidation.

No major transactions with other related parties have been entered into in the period under review.

Functional and presentation currency — Items included in the Group’s financial statements are measured using the currency of the primary economic environment in which the Group’s entities operate (the “functional currency”). The consolidated financial statements are presented in millions of Swiss francs (CHF), which is the Group’s presentation currency.

Foreign currency exchange rates
  30.06.2012 31.12.2011 Average 2012 HY Average 2011 HY
1 British pound (GBP)
  1.4888 1.4559 1.4650 1.4634
1 Czech koruna (CZK)
  0.0471 0.0478 0.0479 0.0522
1 Euro (EUR)
  1.2011 1.2166 1.2053 1.2713
100 Hungarian forint (HUF)
  0.4193 0.3867 0.4078 0.4714
100 Polish zloty (PLN)
  28.4264 27.2647 28.3795 32.1409
1 Singapore dollar (SGD)
  0.7489 0.7242 0.7350 0.7195
1 US dollar (USD)
  0.9494 0.9388 0.9290 0.9051


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