Access America 2003 Annual Report Download - page 29

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Income Taxes
Income tax expense includes current income taxes and deferred income taxes. Certain items of income and expense
are not reported in tax returns and financial statements in the same year. The tax effect of these timing differences
is booked as deferred taxes.
Technical interest
Due to the short term character of the business the calculation of technical interest was discontinued in 2002.
This has an impact on the ratios of previous years.
Explanation of the accounting and valuation policies differing from Swiss law
The most important differences are summarised below.
Shareholders’ equity
Shareholders’ equity increases overall because investments available for sale are shown in the balance sheet at
market value with the unrealised gains / losses being included under other reserves.
Claim equalisation reserves
Claim equalisation reserves and major risk reserves are not allowed under Mondial Assistance Group accounting
policy because they do not represent a present obligation toward third parties.
Claims reserves
Claims reserves tend to be somewhat lower under Mondial Assistance Group accounting policy because they are not
calculated in accordance with the prudence concept but at the best estimate of the ultimate cost.
Acquisition costs
Under Mondial Assistance Group accounting policy acquisition costs are capitalised and amortised over the term of
the policy.
Goodwill
Goodwill is amortised through income over its estimated useful life under Mondial Assistance Group accounting
policy, but not exceeding 10 years.