IOOF  | Annual Report 2012 (s)   Insurance contract liabilities and claims  expense (t)   Shareholders entitlement to monies held in  statutory funds (u) Earnings per share (v) Segment reporting Determination and presentation of operating  segments (y) Parent entity financial statements (x) New standards and interpretations not yet  adopted (w) Liability to buy back vested shares  the fund. Amounts distributable to members are recorded in  profit or loss as an expense. There is no claims expense in respect of life investment  contracts. Surrenders and withdrawals which relate to life  investment contracts are treated as a movement in life  investment contract liabilities. Surrenders are recognised when  the policyholder formally notifies of their intention to end the  policy previously contracted. Life insurance contract liabilities are calculated in accordance  with actuarial standards. A claim expense is recognised when the liability to the  policyholder under the policy contract has been established,  or upon notification of the insured event. Withdrawal  components of life insurance contracts are not expenses and  are treated as movements in life insurance contract liabilities. Monies held in the life insurance Statutory Funds (including  the Benefit Funds) are subject to the distribution and transfer  restrictions and other requirements of the Life Insurance Act  1995. Monies held in the benefit funds and controlled trusts  are held for the benefit of the members of those funds, and are  subject to the constitution and rules of those funds. The Group presents basic and diluted earnings per share data  for its ordinary shares. Basic earnings per share is calculated by  dividing the profit or loss attributable to ordinary shareholders  of the Company by the weighted average number of ordinary  shares outstanding during the year, adjusted for treasury shares  held. Diluted earnings per share is determined by adjusting the  profit or loss attributable to ordinary shareholders and the  weighted average number of ordinary shares outstanding,  adjusted for treasury shares held, for the effects of all dilutive  potential ordinary shares, which comprise performance rights  and share options granted to employees. An operating segment is a component of the Group that  engages in business activities from which it may earn revenues  and incur expenses, including revenues and expenses  that relate to transactions with any of the Group’s other  components. All operating segments’ operating results are  regularly reviewed by the Group’s Managing Director to make  decisions about resources to be allocated to the segment  and assess its performance, and for which discrete financial  information is available. Segment results that are reported to the Managing Director  include items directly attributable to a segment as well as  those that can be allocated on a reasonable basis. Unallocated  items comprise mainly corporate assets, head office expenses,  and income tax assets and liabilities. A liability has been recognised in respect of an obligation by  the Group to buy back vested shares in some Perennial Group  subsidiaries under certain circumstances. The above liabilities  are recorded at fair value. Determination of fair value has  required assumptions concerning future growth, discount rates  and fund flows.  For further information on valuation methods for the liability to  buy back vested shares refer to note 4(e) fair value estimation. A number of new standards, amendments to standards and  interpretations are effective for annual periods beginning  after 1 July 2012, and have not been applied in preparing  these consolidated financial statements. None of these are  expected to have a significant effect on the consolidated  financial statements of the Group, except for AASB 9  Financial  Instruments , which becomes mandatory for the Group’s 2014  consolidated financial statements and could change the  classification and measurement of financial assets. The Group  does not plan to adopt this standard early and the extent of  the impact has not been determined. Parent entity information has been reinstated in accordance  with a directive from the Australian Prudential Regulatory  Authority dated 1 September 2010 to all its regulated entities. Disclosure of parent entity information is not required under  the Corporations Act 2001. page 71