Contents

1 1 EY Good insurance (International) Limited Contents Abbreviations and key .. 2 Introduction .. 3 Independent auditor s report to the shareholders of Good insurance (International) Limited .. 11 Consolidated statement of profit or loss .. 12 Consolidated statement of other comprehensive income .. 14 Consolidated statement of financial 15 Consolidated statement of changes in equity .. 17 Consolidated statement of cash flows .. 19 Notes to the consolidated financial statements .. 22 Appendix A Shadow accounting .. 146 Appendix B Glossary of insurance terms.

2 151 Appendix C Information in other illustrative financial statements available .. 153 Good insurance (International) Limited EY | 2 Abbreviations and key The following styles of abbreviation are used in this set of International GAAP illustrative financial statements: IAS International Accounting Standard , paragraph 41 IAS International Accounting Standard , Basis for Conclusions, paragraph 13 IFRS International Financial Reporting Standard , paragraph 44 SIC Standing Interpretations Committee Interpretation , paragraph 6 IFRIC IFRS Interpretations Committee (formerly IFRIC) Interpretation , paragraph 6 IAS International Accounting Standard No.

3 39 Guidance on Implementing IAS 39 Section G: Other, paragraph IAS International Accounting Standard No. 39 Appendix A Application Guidance, paragraph AG71 ISA International Standard on Auditing No. 700, paragraph 25 Commentary The commentary explains how the requirements of IFRS have been implemented in arriving at the illustrative disclosure GAAP Generally Accepted Accounting Principles/Practice IASB International Accounting Standards Board Interpretations Committee IFRS Interpretations Committee (formerly International Financial Reporting Interpretations Committee (IFRIC)) SIC Standing Interpretations Committee 3 EY Good insurance (International)

4 Limited Introduction This publication contains the consolidated financial statements of a fictitious company, Good insurance (International) Limited, a limited liability insurance company with subsidiaries (the Group) incorporated and listed in Euroland, with a reporting date of 31 December 2015. Euroland is a fictitious country within Europe. The functional currency of the parent and presentation currency of the Group is the euro. These illustrative financial statements have been produced in accordance with International Financial Reporting Standards (IFRS) for an insurance company that issues life and non-life insurance products (which comprise both general insurance and healthcare products) as well as some investment products.

5 The Group also performs investment management services to holders of investment products that do not contain an insurance component. Objective This set of illustrative financial statements is one of many prepared by EY to assist you in preparing your own financial statements. These illustrative financial statements are intended to reflect transactions, events and circumstances that we consider to be most common to the insurance industry. Certain disclosures are included in these financial statements merely for illustrative purposes, even though they may be regarded as items or transactions that are not material for the Group.

6 How to use these illustrative financial statements to prepare entity-specific disclosures Users of this publication are encouraged to prepare entity-specific disclosures, for which these illustrative financial statements may serve as a useful reference. Transactions and arrangements other than those applicable to the Group may require additional disclosures. It should be noted that the illustrative financial statements of the Group are not designed to satisfy any stock market or country-specific regulatory requirements, nor is this publication intended to reflect disclosure requirements that apply mainly to regulated or specialised industries.

7 Notations shown in the right-hand margin of each page are references to IFRS paragraphs that describe the specific disclosure requirements. Commentaries are provided to explain the basis for the disclosure or to address alternative disclosures not included in the illustrative financial statements. For a more comprehensive list of disclosure requirements, please refer to EY's Online International GAAP Disclosure Checklist. If questions arise as to the IFRS requirements, it is essential to refer to the relevant source material and, where necessary, to seek appropriate professional advice.

8 Improving disclosure effectiveness The terms disclosure overload and cutting the clutter describe an acute problem in financial reporting that has become a priority issue for the International Accounting Standards Board (IASB or Board), local standard setters, and regulatory bodies. The growth and complexity of financial statements disclosure is also drawing significant attention from financial statement preparers, and most importantly, the users of financial statements. Even though there is no formal definition of disclosure overload , from the different discussions and debates among stakeholders, three common themes have appeared, namely: financial statements format or structure, tailoring and materiality.

9 The intended purpose of Good insurance (International) Limited - Illustrative consolidated financial statements for the year ended 31 December 2015 means that the ordering of the notes, to a great extent, follows the structure suggested in paragraph 114 of IAS 1 Presentation of Financial Statements. An alternative structure that some may find more effective in permitting the users to identify the relevant information more easily, involves reorganising the notes according to their nature and perceived importance. An illustrative ordering of the alternative structure that is based on seven different notes sections is as summarised in the table below: Sections For example, comprising.

10 Corporate and Group information Corporate and Group information Basis of preparation and other significant accounting policies Basis of preparation Other significant accounting policies not covered in other sections (below) Changes in accounting policies and disclosures Significant accounting judgements, estimates and assumptions Fair value measurement and related fair value disclosures Impact of standards issued but not yet effective Good insurance (International) Limited EY | 4 Sections For example, comprising: Group business, operations.