IFRS Logical Data Model VERSION 1.0 Issue date: 14.05.

2010 Author: - Rahul Gupta

Reviewers:
Name Sandeep Kumar Sharma Kala Prasad Rao Allena Area Senior Manager Manager

Introduction to IFRS
International Financial Reporting Standards (IFRS) are Standards, Interpretations and the Framework adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). IAS was issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). On 1 April 2001, the new IASB took over from the IASC the responsibility for setting International Accounting Standards. During its first meeting the new Board adopted existing IAS and SIC (Standing Interpretations Committee). The IASB has continued to develop standards calling the new standards IFRS. In recent years, there has been a clear trend toward International Accounting Standards [now known as International Financial Reporting Standards (IFRS)] as the single body of internationally accepted accounting standards. What is significant about this trend is the circumstance in which IFRS are now used. Historically, IFRS were used on a voluntary basis. Today, more and more jurisdictions are now requiring companies to use IFRS for local reporting or listing purposes. In many cases, domestic as well as foreign companies are subject to these requirements.

What factors contribute to the trend toward IFRS?

A number of factors have contributed to the trend toward IFRS. These include the following:

Securities regulators and national accounting standard-setters have been seeking approaches in their standard-setting processes that are consistent with those of other standard-setters. Users of financial information (i.e., analysts and investors) have encouraged the development of standards that provide transparent reporting in a consistent and comparable fashion worldwide. Companies have been applying their local standards, which may permit more than one approach to an accounting issue, in a manner consistent with IFRS.

How IFRS will change the global reporting environment

As this environment continues to evolve, there will be a further convergence of accounting and financial reporting standards worldwide. Over the last few years, there has been a clear trend toward IFRS as the single body of internationally accepted accounting standards. This means that the U.S. reporting environment is now an integral part of a larger global reporting environment. No longer are standards developed in the vacuum of the domestic environment only. It also means that the standards will be written differently than in the past. Emphasis will now be on underlying concepts and principles versus a set of rules. As a result, the application of those standards will require more professional judgment than in the past.

Summaries of International Financial Reporting Standards

The following IFRS statements are currently issued by IASB IFRS 1 First-time Adoption of International Financial Reporting Standards IFRS 2 Share-based Payment 2

IFRS 3 Business Combinations IFRS 4 Insurance Contracts IFRS 5 Non-current Assets Held for Sale and Discontinued Operations IFRS 6 Exploration for and evaluation of Mineral Resources IFRS 7 Financial Instruments: Disclosures IFRS 8 Operating Segments

IFRS Reports
IFRS With-Profit Analysis of Change Report: This is a key control in the reporting process and enables to identify the main causes of change in IFRS Balance Sheet for With Profit (WP) business between two given point of time and provides reconciliation between RBS working capital and IFRS UDS. It provides the necessary information required for the submission of IFRS reporting. It helps the management to understand the factors causing an increase or decrease in UDS and the areas for which they may need to take measures. The report provides analysis of change between the opening (as on Period Start date) and closing (as on Period End date) positions of the IFRS Balance Sheet and covers the movement in each of the components of: 1. Realistic value of Assets - Regulatory value of assets, Excess admissible assets, Present Value of future profits (Non-Profit) 2. Realistic value of Liabilities - With Profit Benefit Reserve (WPBR), Planned enhancements to WPBR, Planned deductions from WPBR, Future costs of contractual guarantees, Future costs of non-contractual commitments, Future costs of financial options, Future costs of smoothing, PV of shareholder transfers charged to Estate, PV charges vs. expenses, Any other long-term insurance liabilities, Realistic current liabilities IFRS With-Profit Sensitivities Report: The purpose of the With Profit Sensitivities report is to measure the impact that varying scenarios (economic and business related) would have on the base IFRS results. The movements of the following variables are tracked to show the impact that each has on the IFRS Balance Sheet. Annuitant mortality Assurance mortality Credit spread Equity value Expenses Interest Property value IFRS Non-Profit Analysis of Change Report: This is a key control in the reporting process and enables to identify the main causes of change in IFRS Balance Sheet for Non Profit (NP) business between two given point of time. It provides the necessary information required for the submission of IFRS reporting. It helps the management to understand the factors causing an increase or decrease in IFRS profit and the areas for which they may need to take measures. 3

The report provides analysis of change between the opening (as on Period Start date) and closing (as on Period End date) positions of the following Reporting measures: IFRS Profit (excluding DAC) Gross Profit Gross PVFP DAC (Deferred Acquisition Cost) DIR (Deferred Income Reserve) Assets IFRS Reserves

IFRS Non-Profit Sensitivities Report: The purpose of the Non Profit Sensitivities report is to measure the impact that varying scenarios (economic and business related) would have on the base IFRS Profit (excluding DAC), Gross Profit, Gross PVFP, DAC, Assets and IFRS Reserves. The movements of the following variables are tracked to show the impact each has on the above measures: Annuitant mortality Assurance mortality Credit spread Equity value Expenses Interest Property value IFRS Non-Profit DAC-DIR Analysis of Change Report: This is a key control in the reporting process and enables to identify the main causes of change in DAC & DIR variables for Non Profit business between two given point of time. It provides the necessary information required for the submission of IFRS reporting. IFRS Non-Profit DAC-DIR Sensitivities Report: The purpose of the Non Profit DAC-DIR Sensitivities report is to measure the impact that varying scenarios (economic and business related) would have on the DAC and DIR variables. The movements of the following variables are tracked to show the impact each has on the above measures: Annuitant mortality Assurance mortality Credit spread Equity value Expenses Interest Property value Non-Profit Account-Actuarial Reconciliation Report: The purpose of this report is to reconcile Accounting Revenue data with Actuarial Revenue Account (Expected) and Actuarial Revenue Account (Actual) data for the Non Profit business. The reconciliation is required for the following broad categories of measures between Accounting and Actuarial figures: Premium Switch Claim Commission Charges Expenses Investment return 4

Shareholder transfer Tax No Actual Cashflow

To support above set of reports, below generic logical model is proposed.

Logical Data Model - How this is generic?

The standard principles and reports for IFRS will remain the same across organizations. However the hierarchies might vary across organizations. There will be standard set of attributes associated with the industry like policies, funds, organizations, products but there might be organization specific attributes like line of business, agents or agencies etc; In this Logical data model following are the dimensions that have been used: 1. Organization Dimension: This dimension provides information relating to fund such as fund code, fund name, legal entity name, and fund type name and business unit name.

2. Report item dimension: This dimension stores hierarchy of related measures that will be displayed on the report for each of the types of values of the IFRS report and gives the business a logical break down of additive report items.

3. Step Dimension: This dimension stores a list of steps required for the IFRS reporting. A step is the line item that is displayed on the report. All these line items are stored as keys in the fact so that when the report is generated a correct combination of the measure for the given step is displayed on the report.

4. Product Dimension: This dimension holds the information related to products like product type, product codes within the organization.

5. Product Type Dimension: This dimension holds the information related to type of the product within the organization.

6. Business Type dimension: This dimension holds the information related new business or existing business within the organization.

7. Date Dimension: This dimension hold the date hierarchy followed by the organization.

8. Policy Dimension: Provides Policy specific information, it is instrumental for facilitating policy level analysis.

9. Data source Dimension: Each of the measures used for defining the IFRS principles is sourced from different sources and at different grains or levels. This dimension identifies the source and grain of the data.

10. Policy Profile Dimension: Provides information relating to the volatile attributes of a policy such as term, payment frequency, paid up indicator, and joint life indicator.

11. Life Assured Demographic Dimension OR Policy holder Demographic dimension: Provides information relating to Age, Gender, Occupation and Smoker Status for either or both lives assured within a policy. This Logical Data model is scalable and can be extended or customized to incorporate the organization specific attributes.

IFRS Logical data model description

The logical data model for IFRS consists of three key subject areas. The reports have been classified depending on the purpose of the data used in the reports. These are: 1. IFRS AoC and Sensitivities ETL IFRS WP AoC Fact IFRS WP Sensitivities Fact IFRS NP AoC Fact IFRS NP Sensitivities Fact

2. IFRS NP Policy Analysis ETL IFRS NP Policy Analysis Fact

3. IFRS NP Revenue Flow Comparison ETL IFRS NP Revenue Flow Comparisons Fact

4. IFRS MCEV Bridge ETL IFRS MCEV Bridge Fact

Facts and their related dimensions have been defined for each of these subject areas and the Logical data model has been defined per each fact. Please find the Logical data model figures of each of these subject areas below:

IFRS WP AoC Subject Area:

Stores delta values for various steps required for IFRS WP analysis of change reports. The values are calculated based on each months actuarial data and stored against the last day of the relevant month. These can be measured by product and organisation. The steps in AoC report show Opening balance sheet position, closing balance sheet positions, and movement from Opening balance sheet position to closing balance sheet positions. IFRS WP AoC fact serves as a source for the IFRS WP AoC report.

Data Source Dimension Data Source Key data_source_code data_source_name data_source_level

Organisation Dimension Organisation Key fund_code fund_name fund_type legal_entity_name business_unit_name

Step Dimension Step Key step_code step_name step_level step_sort_key step_parent_name step_type

Product Dimension Product Key product_code product_name product_type product_with_profit_indicator product_linked_type_name product_FSA_category product_subgroup_name product_group_name product_MCEV _product_group_name product_MCEV_category_name product_life_pension_group product_stocastic_group_name product_ICA_category_name product_ICA_aggregate_split_name IFRS WP AoC Fact Organisation Key (FK) Step Key (FK) Date Key (FK) Report Item Key (FK) Product Key (FK) Product Type Key (FK) Data Source Key (FK) direct_written_value reassurance_accepted_value ceded_internally_value ceded_externally_value gross_value net_value

Date Dimension Date Key day_date day_week_num day_week_id day_month_num day_month _id day_quarter_num day_quarter _id day_year_num day_year_id day_fiscal_week_num day_fiscal_week_id day_fiscal_month_num day_fiscal_month _id day_fiscal_quarter_num day_fiscal_quarter_id day_fiscal_year_num day_fiscal_year_id

Report Item Dimension Product Type Dimension Product Type Key product_type_code product_IFRS_participation_type product_IFRS_classification_type Report Item Key report_code report_item_code report_item_name report_item_format report_item_level_1 report_item_level_2 report_item_level_3 report_item_level_4 report_item_level_5 report_item_level_6 report_item_hierarchy

IFRS WP Sensitivities Subject Area:

Stores delta values for various steps required for the Sensitivity report. The values are calculated based on each months actuarial data and stored against the last day of the relevant month. These can be measured by product and organisation. The steps in Sensitivities report show the closing balance sheet position and impact of market on the closing balance sheet position. IFRS WP Sensitivities fact serves as a source for the IFRS WP Sensitivities report.

Organisation Dimension Organisation Key Data Source Dimension Data Source Key data_source_code data_source_level data_source_name fund_code fund_name fund_type legal_entity_name business_unit_name

Step Dimension Step Key step_code step_name step_level step_sort_key step_parent_name step_type

Product Dimension Product Key product_code product_name product_type product_with_profit_indicator product_linked_type_name product_FSA_category product_subgroup_name product_group_name product_MCEV _product_group_name product_MCEV_category_name product_life_pension_group product_stocastic_group_name product_ICA_category_name product_ICA_aggregate_split_name

IFRS WP Sensitivities Fact Organisation Key (FK) Step Key (FK) Date Key (FK) Report Item Key (FK) Product Key (FK) Product Type Key (FK) Data Source Key (FK) direct_written_value reassurance_accepted_value ceded_internally_value ceded_externally_value gross_value net_value

Date Dimension Date Key day_date day_week_num day_week_id day_month_num day_month _id day_quarter_num day_quarter _id day_year_num day_year_id day_fiscal_week_num day_fiscal_week_id day_fiscal_month_num day_fiscal_month _id day_fiscal_quarter_num day_fiscal_quarter_id day_fiscal_year_num day_fiscal_year_id

Report Item Dimension Report Item Key report_code report_item_code report_item_name report_item_format report_item_level_1 report_item_level_2 report_item_level_3 report_item_level_4 report_item_level_5 report_item_level_6 report_item_hierarchy

Product Type Dimension Product Type Key product_type_code product_IFRS_participation_type product_IFRS_classification_type

IFRS NP AoC Subject Area:

Stores delta values for various steps required for IFRS NP analysis of change reports. The values are calculated based on each months actuarial data and stored against the last day of the relevant month. These can be measured by product and organisation. The steps in AoC report show Opening balance sheet position, closing balance sheet positions, and movement from Opening balance sheet position to closing balance sheet positions. IFRS NP AoC fact serves as a source for the IFRS NP AoC report.

Organisation Dimension Organisation Key fund_code fund_name fund_type legal_entity_name business_unit_name

Step Dimension Step Key step_code step_name step_level step_sort_key step_parent_name step_type

Data Source Dimension Data Source Key data_source_code data_source_level data_source_name

Product Dimension Product Key product_code product_name product_type product_with_profit_indicator product_linked_type_name product_FSA_category product_subgroup_name product_group_name product_MCEV _product_group_name product_MCEV_category_name product_life_pension_group product_stocastic_group_name product_ICA_category_name

IFRS_NP_AoC_Fact Organisation Key (FK) Step Key (FK) Date Key (FK) Report Item Key (FK) Product Key (FK) Product Type Key (FK) Data Source Key (FK) Business Type Key (FK) direct_written_value reassurance_accepted_value ceded_internally_value ceded_externally_value gross_value net_value

Date Dimension Date Key day_date day_week_num day_week_id day_month_num day_month _id day_quarter_num day_quarter _id day_year_num day_year_id day_fiscal_week_num day_fiscal_week_id day_fiscal_month_num day_fiscal_month _id day_fiscal_quarter_num day_fiscal_quarter_id day_fiscal_year_num day_fiscal_year_id

Business Type Dimension Business Type Key Business Type Name Report Item Dimension Report Item Key report_code report_item_code report_item_name report_item_format report_item_level_1 Product Type Dimension Product Type Key product_type_code product_IFRS_participation_type product_IFRS_classification_type report_item_level_2 report_item_level_3 report_item_level_4 report_item_level_5 report_item_level_6

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IFRS NP Sensitivities Subject Area:

Stores delta values for various steps required for the Sensitivity report. The values are calculated based on each months actuarial data and stored against the last day of the relevant month. These can be measured by product and organisation. The steps in Sensitivities report show the closing balance sheet position and impact of market on the closing balance sheet position. IFRS NP Sensitivities fact serves as a source for the IFRS NP Sensitivities report.

Organisation Dimension Organisation Key Data Source Dimension Data Source Key data_source_code data_source_level data_source_name fund_code fund_name fund_type legal_entity_name business_unit_name

Step Dimension Step Key step_code step_name step_level step_sort_key step_parent_name step_type

Product Dimension Product Key product_code product_name product_type product_with_profit_indicator product_linked_type_name product_FSA_category product_subgroup_name product_group_name product_MCEV _product_group_name product_MCEV_category_name product_life_pension_group product_stocastic_group_name product_ICA_category_name

IFRS NP Sensitivities Fact Organisation Key (FK) Step Key (FK) Date Key (FK) Report Item Key (FK) Product Key (FK) Product Type Key (FK) Data Source Key (FK) Business Type Key (FK) direct_written_value reassurance_accepted_value ceded_internally_value ceded_externally_value gross_value net_value

Date Dimension Date Key day_date day_week_num day_week_id day_month_num day_month _id day_quarter_num day_quarter _id day_year_num day_year_id day_fiscal_week_num day_fiscal_week_id day_fiscal_month_num day_fiscal_month _id day_fiscal_quarter_num day_fiscal_quarter_id day_fiscal_year_num day_fiscal_year_id Business Type Dimension Business Type Key Business Type Name

Report Item Dimension Report Item Key report_code report_item_code report_item_name report_item_format report_item_level_1

Product Type Dimension Product Type Key product_type_code product_IFRS_participation_type product_IFRS_classification_type

report_item_level_2 report_item_level_3 report_item_level_4 report_item_level_5 report_item_level_6

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IFRS NP Policy Analysis Subject Area:

This subject area shows only Opening balance sheet position and closing balance sheet positions but unlike AoC fact which is reported on product level, this fact reports on policy level. IFRS NP Policy fact serves as a source for the IFRS NP Policy Analysis report.

Data Source Dimension Data Source Key data_source_code data_source_level data_source_name Organisation Dimension Organisation Key fund_code fund_name fund_type legal_entity_name business_unit_name Step Dimension Step Key step_code step_name step_level step_sort_key step_parent_name step_type

Product Dimension Product Key product_code product_name product_type product_with_profit_indicator product_linked_type_name product_FSA_category product_subgroup_name product_group_name product_MCEV _product_group_name product_MCEV_category_name product_life_pension_group product_stocastic_group_name product_ICA_category_name
WH_DMT_IFRS_NP_POL_FACT

Organisation Key (FK) Step Key (FK) Date Key (FK) Report Item Key (FK) Product Key (FK) Product Type Key (FK) Data Source Key (FK) Policy Key (FK) LAD Life Key 1 (FK) LAD Life Key 2 (FK) Policy Profile Key (FK) Business Type Key (FK) direct_written_value reassurance_accepted_value ceded_internally_value ceded_externally_value

Date Dimension Date Key day_date day_week_num day_week_id day_month_num day_month _id day_quarter_num day_quarter _id day_year_num day_year_id day_fiscal_week_num day_fiscal_week_id day_fiscal_month_num day_fiscal_month _id day_fiscal_quarter_num day_fiscal_quarter_id day_fiscal_year_num day_fiscal_year_id

Product Type Dimension Product Type Key product_type_code product_IFRS_participation_type product_IFRS_classification_type

gross_value net_value

Business Type Dimension Business Type Key Business Type name

Life Assured Demographic Dimension LAD Life Key LAD_age LAD_gender LAD_occupation_name LAD_smoker_ind Report Item Dimension Report Item Key report_code report_item_code report_item_name report_item_format report_item_level_1 report_item_level_2 report_item_level_3 report_item_level_4 report_item_level_5 report_item_level_6

Policy Profile Dimension Policy Profile Key policy_profile JT_life_indicator policy_profile_term policy_profile_PUP_indicator policy_profile_payment_frequency Policy Dimension Policy key policy_number policy_source_system_name policy_agreement_key policy_start_date policy_end_date

e_PUP_indicator

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IFRS NP Revenue Flow Comparison Subject Area:

The IFRS NP Revenue Flow Comparison ETL reconciles the Accounting Revenue data with Actuarial Revenue Account (Expected) and Actuarial Revenue Account (Actual) data for the Non Profit business. This fact serves as a source for the IFRS NP revenue flow comparison report. net_

Organisation Dimension Organisation Key fund_code fund_name fund_type legal_entity_name business_unit_name

IFRS NP Reconciliation Fact Organisation Key (FK) Date Key (FK) Reconciliation Product Key Reconciliation Revenue Flow 3 Key accounting_direct_written_value accounting_reassurance_accepted_value accounting_ceded_internally_value accounting_ceded_externally_value accounting_gross_value accounting_net_value actuarial_expected_direct_written_value actuarial_expected_reassurance_accepted_value actuarial_expected_ceded_internally_value actuarial_expected_ceded_externally_value actuarial_expected_gross_value actuarial_expected_net_value actuarial_actual_direct_written_value actuarial_actual_reassurance_accepted_value actuarial_actual_ceded_internally_value actuarial_actual_ceded_externally_value actuarial_actual_gross_value actuarial_actual_net_value Date Dimension Date Key day_date day_week_num day_week_id day_month_num day_month _id day_quarter_num day_quarter _id day_year_num day_year_id day_fiscal_week_num day_fiscal_week_id day_fiscal_month_num day_fiscal_month _id day_fiscal_quarter_num day_fiscal_quarter_id day_fiscal_year_num day_fiscal_year_id

Reconciliation Revenue Flow 2 Dimension Reconciliation Revenue Flow 2 Key reconciliation_revenue_flow2_code reconciliation_revenue_flow2_name reconciliation_revenue_flow1_code

Reconciliation Revenue Flow 3 Dimension Reconciliation Revenue Flow 3 Key reconciliation_revenue_flow3_code reconciliation_revenue_flow3_name Reconciliation Revenue Flow 2 Key

Reconciliation Product Dimension Reconciliation Product Key reconciliation_product_code reconciliation_product_name reconciliation_product_model_type Reconciliation Product Group L4 Key

Reconciliation Product Group Dimension Reconciliation Product Group L4 Key reconciliation_product_group_L4_code reconciliation_product_group_L4_name reconciliation_product_group_L3_name reconciliation_product_group_L2_name reconciliation_product_group_L1_name

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IFRS MCEV Bridge Subject Area:

The purpose of the IFRS MCEV Bridge ETL is to integrate data from IFRS and MCEV into a common platform where a comparison can take place. This fact serves as a source for the MCEV 9* report.

Organisation Dimension Organisation Key fund_code fund_name fund_type legal_entity_name business_unit_name Step Dimension Step Key step_code step_name step_level step_sort_key step_parent_name step_type

Date Dimension

Data Source Dimension Data Source Key data_source_code data_source_level data_source_name

IFRS MCEV Bridge Fact Organisation Key (FK) Step Key (FK) Date Key (FK) Report Item Key (FK) Product Key (FK) Data Source Key (FK) dec_value

Date Key day_date day_week_num day_week_id day_month_num day_month _id day_quarter_num day_quarter _id day_year_num day_year_id day_fiscal_week_num day_fiscal_week_id day_fiscal_month_num day_fiscal_month _id day_fiscal_quarter_num day_fiscal_quarter_id day_fiscal_year_num day_fiscal_year_id

Product Dimension Product Key product_code product_name product_type product_with_profit_indicator product_linked_type_name product_FSA_category product_subgroup_name product_group_name product_MCEV _product_group_name product_MCEV_category_name product_life_pension_group product_stocastic_group_name product_ICA_category_name

Report Item Dimension Report Item Key report_code report_item_code report_item_name report_item_format report_item_level_1 report_item_level_2 report_item_level_3 report_item_level_4 report_item_level_5 report_item_level_6

* MCEV9- NW to IFRS PBT - The purpose of this report is to reconcile the return on the Market Consistent Embedded Value Net
Worth to the IFRS profit before tax.

All the above fact tables are YTD facts. Since the volume of data in the YTD (Year to Date) fact will be huge there is a proposed YTD Aggregate fact which can be used to stores data aggregated to Product level and used for generating reports that need data only at product level for faster response to queries. But that again is an individual decision of the organizations which adopt this Generic Logical data model. Again it is re emphasized that this Data model is scalable and can be customized by adding or removing dimension based of the structure of the business of the customers adopting this model.

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