145
forward focused
27 Liabilities On Insurance Contracts
(continued)
The reinsurers’ share of outstanding claims and unearned premium reserves are included in accounts receivable. Claims reserves
comprise provisions for claims reported by policyholders and claims incurred but not yet reported. The ultimate cost of settling the
liabilities in respect of claims that have occurred are estimated based on known facts at the statement of financial position date.
Outstanding claims reserves are not discounted for the time value of money.
The principal assumption underlying the estimates is past claims development experience. This includes assumptions in respect of
average claims costs and claims numbers for each accident year. In addition, larger claims are separately assessed by loss adjusters.
Judgement is used to assess the extent to which external factors such as judicial decisions and government legislation affect the
estimates. The ultimate liabilities will vary as a result of subsequent developments. Differences resulting from reassessment of the
ultimate liabilities are recognised in subsequent periods.
28 Operating Profit Before Finance Costs
2012
2011
$
$
Revenue
9,146,488
8,497,341
Cost of sales
(6,617,305)
(6,058,979)
Gross profit
2,529,183
2,438,362
Selling, general and administrative expenses
(1,885,422)
(1,921,410)
Other income
150,020
129,926
793,781
646,878
1...,137,138,139,140,141,142,143,144,145,146 148,149,150,151,152,153,154,155,156,157,...160