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for the year ended 30 June 2011

1. Suncorp Group restructure

On 7 January 2011, the Suncorp Group, being Suncorp Group Limited and its subsidiaries, completed a restructure which resulted in a non-operating holding company, Suncorp Group Limited (the Company) replacing Suncorp-Metway Ltd (SML) as the ultimate parent of the Group. Following the restructure, the Suncorp Group is comprised of three separate lines of business, General Insurance, Banking, and Life, each with their own non-operating holding companies. The three lines of business and corporate activities (Corporate) collectively form the four business areas of the Suncorp Group. SML became a subsidiary of the Company following the restructure and is included in the Banking business area.

The restructure was effected by a scheme of arrangement which was approved by SML shareholders on 15 December 2010. Approval was also obtained from the Federal Treasurer, the Australian Prudential Regulation Authority (APRA) and the Supreme Court of Queensland. On restructure, ordinary shareholders of SML, with the exception of a small number of ineligible foreign shareholders, obtained one ordinary share in the Company for each ordinary share they held in SML prior to the implementation of the restructure.

The Company’s consolidated fnancial statements are presented as a continuation of the consolidated SML fnancial statements. The comparative information presented is consistent with the disclosures made in the consolidated fnancial statements of SML for the year ended 30 June 2010. Comparative earnings per share calculations for the year ended 30 June 2010 were not affected as a result of the restructure.

2. Basis of preparation

The Company is a public company domiciled in Australia and the address of the Company’s registered offce is Level 18, 36 Wickham Terrace, Brisbane, Qld, 4000. The consolidated fnancial statements for the year ended 30 June 2011 comprise the Company and its subsidiaries. The fnancial statements were authorised for issue by the Board of Directors on 24 August 2011.

The Suncorp Group has applied amendments to the

Corporations Act 2001 that remove the requirement for the Suncorp Group to include parent entity fnancial statements. Parent entity fnancial statements have been replaced by the specifc parent entity disclosures in note 26.1.

The consolidated fnancial statements have been prepared on the historical cost basis unless the application of fair value measurements are required by relevant accounting standards. An exception exists regarding the measurement of defned beneft superannuation scheme surplus (defcit) which is described in note 33.1.20.

Signifcant accounting policies applied in the preparation of these consolidated fnancial statements are set out in note 33. There have been no changes to the recognition and measurement accounting policies during the year.

The Suncorp Group’s risk management objectives and structure including the risk management of exposures arising from fnancial instruments are detailed in note 34. Where necessary, comparatives have been restated to conform to changes in presentation in the current year. These consolidated fnancial statements are presented in Australian dollars which is the Company’s functional and presentation currency and the functional currency of the majority of subsidiaries.

As the Company is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998, all fnancial information presented in Australian dollars has been rounded to the nearest one million dollars unless otherwise stated.

2.1 Statement of compliance

The consolidated fnancial statements are general purpose fnancial statements which have been prepared in accordance with Australian Accounting Standards (AASBs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the

Corporations Act 2001 . The consolidated fnancial statements of the Suncorp Group comply with the International Financial Reporting Standards (IFRS) and interpretations adopted by the International Accounting Standards Board (IASB).

2.2 Use of estimates and judgements

The preparation of consolidated fnancial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the amounts reported in the fnancial statements. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Estimates and underlying assumptions are reviewed on an ongoing basis. Where revisions are made to accounting estimates, any fnancial impact is recognised in the period in which the estimate is revised.

Signifcant estimates, judgements and assumptions are discussed in the following notes:

–– General Insurance – outstanding claims liabilities, assets arising from reinsurance contracts and other recoveries (refer note 6.6.2(c))

–– Banking – specifc and collective provisions for impairment (refer note 33.1.16(a)) –– Life – net policy liabilities (refer note 8.7)

–– impairment of goodwill and other intangible assets (refer note 18.1); and

–– valuation of fnancial instruments and fair value hierarchy disclosures (refer note 25).

Notes to the consolidated fnancial statements