NTUC Income AR 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 These notes form an integral part of and should be read in conjunction with the financial statements. 1. GENERAL NTUC Income Insurance Co-operative Limited (the “Co-operative”) is domiciled in Singapore and constituted under the Co-operative Societies Act (Chapter 62) (“the Act”). The address of the Co-operative's registered office is 75 Bras Basah Road, Income Centre, Singapore 189557. The principal activities of the Co-operative consist of the underwriting of life and general insurance business, and carrying out investment activities incidental to its business. The principal activities of its subsidiaries are investment holding, owning and leasing an investment property, operator of retail and referral services and financial advisory services. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The financial statements of the Group as at and for the year ended 31 December 2019 comprise the Co-operative and its subsidiaries (together referred to as the “Group”) and the Group’s interest in equity- accounted investees. The subsidiaries are consolidated into the respective funds. These financial statements have been prepared in accordance with the Financial Reporting Standards in Singapore (“FRSs”), under the historical cost convention except as disclosed in the accounting policies below. The basis for preparation of the financial statements is fund accounting. The preparation of financial statements in conformity with FRS requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes: • Note 3 – classification of insurance and investment contracts • Note 7 – classification of investment properties The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the revision and future years, if the revision affects both current and future years. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are made are disclosed in Note 3. At the reporting date, these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from these estimates. A number of new standards, amendments to standards and interpretations are effective for annual period 1 January 2019, and have been applied in preparing these financial statements. None of these have a significant effect on the financial statements of the Group. The accounting policies set out below have been applied consistently to all periods presented in these financial statements. 52 HERE FOR SURE