Page 139 - Suncorp_Review

Suncorp Group Limited Annual Report 2010/11 137

33.4 New accounting standards and interpretations not yet adopted

The following standard, amendments to standards and interpretations are relevant to current operations. They are available for early adoption but have not been applied by the Suncorp Group in this fnancial report:

–– AASB 9 Financial Instruments was issued and will eventually replace AASB 139 Financial Instruments: Recognition and Measurements . It introduced changes in the classifcation and measurement of fnancial assets and fnancial liabilities. This standard becomes mandatory for the Suncorp Group’s 30 June 2014 fnancial statements. The Suncorp Group has not yet determined the potential effect of the new standard.

–– IFRS 10 Consolidated Financial Statements , when it becomes mandatory for the Suncorp Group’s 30 June 2014 fnancial statements, will supersede AASB 127

Consolidated and Separate Financial Statements and Interpretation 112 Consolidation – Special Purposes Entities . It introduces a new single control model to assess whether to consolidate an investee. The Suncorp Group has not yet determined the potential effect of the new standard.

–– IFRS 13 Fair Value Measurement provides a defnition of the term, fair value, and introduces additional disclosure requirements. This is applicable for all assets and liabilities measured at fair value, including non‑fnancial assets and liabilities. This standard becomes mandatory for the Suncorp Group’s 30 June 2014 fnancial statements. The Suncorp Group has not yet determined the potential effect of the new standard. –– AASB 119 Employee Benefts is amended for changes in accounting and disclosures on defned beneft superannuation plans; defnitions of short-term and other long-term employee benefts affecting the measurement of the obligations; and the timing for recognition of termination benefts. The amendments become mandatory for the Suncorp Group’s 30 June 2014 fnancial statements with specifc transitional requirements. The potential effects on adoption of the amendments are yet to be determined.

34. Group risk management

34.1 Group risk management objectives and structure

The Board and management recognise that effective risk management is considered to be critical to the achievement of the Suncorp Group’s objectives. The Board Risk Committee has delegated authority from the Board to oversee the adequacy and effectiveness of the risk management frameworks and processes within the Suncorp Group. An Enterprise Risk Management Framework (ERMF) is in place for the Suncorp Group. It is subject to an annual review, updated for material changes as they occur and is approved by the Board Risk Committee. The ERMF comprises: –– the Suncorp Group’s risk appetite framework and its link to strategic business and capital plans

–– accountabilities and governance arrangements for the management of risk within the Three Lines of Defence model

–– the Suncorp Group’s Policy and Compliance Frameworks; and

–– the risk management process.