107 ANNUAL REPORT 2010 Policyholder claims and benefits consist of claims and benefits  paid to policyholders, including benefit claims in excess of  account value for products for which deposit accounting is  applied and the change in the valuation of liabilities for  insurance and investment contracts. It includes internal and  external claims handling costs that are directly related to the  processing and settlement of claims. Amounts receivable in  respect of salvage and subrogation are also considered.  Impairment charges include impairments on investments in  financial assets, impairments on the valuation of insurance  assets and liabilities and other non-financial assets and  receivables. Refer to note 39.  Interest charges and related fees includes interest expense on  trust pass-through securities and other borrowings. Interest  expense on trust pass-through securities and other borrowings  carried at amortized cost is recognized in profit or loss using  the effective interest method. Results from financial transactions include: Net fair value change of general account financial investments  at fair value through profit or loss, other than derivatives  include fair value changes of financial assets carried at fair  value through profit or loss. The net gains and losses do not  include interest or dividend income. Arrangements that do not take the form of a lease but convey  a right to use an asset in return for a payment are assessed at  inception to determine whether they are, or contain, a lease.  This involves an assessment of whether fulfillment of the  arrangement is dependent on the use of a specific asset and  whether the purchaser (lessee) has the right to control the  use of the underlying asset. Leases that do not transfer substantially all the risks and  rewards of ownership are classified as operating leases.  Gains and losses on financial investments include realized gains  and losses on general account financial assets, other than those  classified as at fair value through profit or loss.  Payments made under operating leases, where the Group is  the lessee, are charged to the income statement on a straight  line basis over the period of the lease. All changes in fair value are recognized in the income  statement, unless the derivative has been designated as a  hedging instrument in a cash flow hedge or a hedge of a net  investment in a foreign operation. Fair value movements of fair  value hedge instruments are offset by the fair value movements  of the hedged item, the resulting hedge ineffectiveness, if any,  is included in this line. In addition the fair value movements of  bifurcated embedded derivatives are included in this line. Where the Group is the lessor under an operating lease, the  assets subject to the operating lease arrangement are  presented in the balance sheet according to the nature of the  asset. Income from these leases are recognized in the income  statement on a straight line basis over the lease term, unless  another systematic basis is more representative of the time  pattern in which use benefit derived from the leased asset is  diminished. Net fair value change on for account of policyholder financial  assets at fair value through profit or loss include fair value  movements of investments held for account of policyholders  (refer to note 2.9). The net fair value change does not include  interest or dividend income. The financial statements are adjusted to reflect events that  occurred between the balance sheet date and the date when the  financial statements are authorized for issue, provided they give  evidence of conditions that existed at the balance sheet date. Events that are indicative of conditions that arose after  the balance sheet date are disclosed, but do not result in  an adjustment of the financial statements themselves.  In addition, results from financial transactions include  gains / losses on real estate (general account and account of  policyholder), net foreign currency gains / (losses) and net fair  value change on borrowings and other financial liabilities and  realized gains on repurchased debt. SHARPENING OUR FOCUS Other Net fair value change on for account of policyholder fi nancial  assets at fair value through profit or loss NOTE 2.34 EVENTS AFTER THE BALANCE SHEET DATE Net fair value change of derivatives Realized gains and losses on fi nancial investments Net fair value change of general account fi nancial  investments at fair value through profit or loss, other than  derivatives NOTE 2.33 LEASES NOTE 2.32 INTEREST CHARGES AND RELATED FEES NOTE 2.30 RESULTS FROM FINANCIAL TRANSACTIONS NOTE 2.31 IMPAIRMENT CHARGES NOTE 2.29 POLICYHOLDER CLAIMS AND BENEFITS