Aviva 2014 Annual Report Download - page 184

Aviva plc Annual report and accounts 2014
Notes to the consolidated financial statements continued
180
28 – Receivables
This note analyses our total receivables.
2014
£m
Restated1
2013
£m
Amounts owed by contract holders 1,512 1,762
Amounts owed by intermediaries 1,100 1,222
Deposits with ceding undertakings 1,322 1,479
Amounts due from reinsurers 277 335
Amounts due from brokers for investment sales 69 149
Amounts receivable for cash collateral pledged 512 577
Amounts due from government, social security and taxes 415 475
Dividends receivable 64
Other receivables 720 1,549
Total 5,933 7,552
Less: Amounts classified as held for sale —(76)
5,933 7,476
Expected to be recovered in less than one year 5,833 7,334
Expected to be recovered in more than one year 100 142
5,933 7,476
1 Restated following the adoption of amendments to IAS 32 ‘Financial Instruments: Presentation’ – see note 1 for details.
Concentrations of credit risk with respect to receivables are limited due to the size and spread of the Group’s trading base. No
further credit risk provision is therefore required in excess of the normal provision for doubtful receivables.
29 – Deferred acquisition costs, other assets, prepayments and accrued income
(a) Deferred acquisition costs and other assets – carrying amount
The carrying amount comprises:
2014
£m
2013
£m
Deferred acquisition costs in respect of:
Insurance contracts
–
Long-term business 529 485
Insurance contracts
–
General insurance and health business 852 868
Participating investment contracts – Long-term business 22 27
Non-participating investment contracts
–
Long-term business 968 1,013
Retail fund management business 710
Total deferred acquisition costs 2,378 2,403
Surpluses in the staff pension schemes (note 49(a)) 2,695 606
Other assets 18 49
Total 5,091 3,058
Less: Amounts classified as held for sale —(7)
5,091 3,051
Deferred acquisition costs (DAC) on long-term business are generally recoverable in more than one year whereas such costs on
general insurance and health business are generally recoverable within one year. Of the above total, £1,277 million (2013: £1,285
million) is expected to be recovered more than one year after the statement of financial position date. For long-term business
where amortisation of the DAC balance depends on projected profits, the amount expected to be recovered is estimated and
actual experience will differ.
Surpluses in the staff pension schemes are recoverable more than one year after the statement of financial position date.
(b) Deferred acquisition costs – movements in the year
The movements in deferred acquisition costs (DAC) during the year were:
2014 2013
Long-term
business
£m
General
insurance
and health
business
£m
Retail fund
management
business
£m
Total
£m
Long-term
business
£m
General
insurance and
health
business
£m
Retail fund
management
business
£m
Total
£m
Carrying amount at 1 January 1,525 868 10 2,403 3,088 939 14 4,041
Acquisition costs deferred during the year 173 2,107
—
2,280 407 2,276
—
2,683
Amortisation (81) (2,102) (3) (2,186) (466) (2,327) (4) (2,797)
Impact of assumption changes (73)
—
—
(73) (213) —
—
(213)
Effect of portfolio transfers, acquisitions and disposals1
—
(4)
—
(4) (2,418) —
—
(2,418)
Foreign exchange rate movements (25) (17)
—
(42) (22) (20)
—
(42)
Shadow adjustment
—
—
—
—
1,149 —
—
1,149
Carrying amount at 31 December 1,519 852 7 2,378 1,525 868 10 2,403
Less: Amounts classified as held for sale —— ——— (6) — (6)
1,519 852 7 2,378 1,525 862 10 2,397
1 Disposals in 2013 include the disposal of US Life (£2,344 million), and the disposal of Ark Life (£67 million).
180 | Aviva plc Annual report and accounts 2014