AXA Group (2007)
Notes to the consolidated financial statements of AXA Group [extract]
Note 1.12.2 Insurance contracts and investment contracts with discretionary participating features [extract]
Following the adoption of UK Financial Reporting standard FRS27, reserves relating to with-profit contracts and the FFA were subject to a change in accounting policies in 2006, that was applied retrospectively, consistently with what other UK insurance companies applied. Reserves were adjusted on a “realistic” basis, and related deferred acquisition costs and unearned revenues reserves were cancelled. These adjustments had no impact on net income or shareholders equity. The presentational impact of applying this standard is detailed in note 14. This change in accounting principles only applied to the Group’s UK with-profit contracts.