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Financial Statements
4.23 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of
dismissal or retirement with the amount of payment varying depending on the employee’s compensation,
length of service and manner of termination (dismissal or retirement). Employees who resign or are dismissed
with cause are not entitled to termination payments. The amount payable in the event of retirement is
equal to 40% of the amount which would be payable upon dismissal without cause.
The provision for employees’ retirement benefits is reflected in the attached balance sheet in accordance
with IAS 19 and is calculated, as at the balance sheet date (1 December 007), based on an independent
actuarial study performed by Hewitt. The net charge to the income statement of € 840.711 is reflected
under the personnel expenses (included in benefits and other staff expenses – refer to note 4.)
The results of the actuarial review of the provision for employee retirement benefits as computed by the
actuary are shown below:
Actuarial study analysis 2007 2006
Principal actuarial assumptions at 31/12/2007
Discount rate 4.7% 4%
Payroll increases 4,7% 4,7%
Average working life 0,18 0,65
Present value of obligations 4.65.149 4.48.191
Unrecognised actuarial net gain 71.685 1.57
Net liability in the balance sheet
5.096.834 4.261.448
Components of income statement charge 78.77
Service cost 671.015 161.66
Interest cost 169.696
Amortization of unrecognised net gain/(loss) 14.7
Settlement/Curtailment/Termination Loss 0 15.56
0 1.066.631
Total income statement charge 840.711
Movements in net liability/ .94.11
(asset) in the balance sheet 4.61.448 (199.04)
1.066.61
Net liability/(asset) at the beginning of the period (5.5) 4.261.448
840.711
Benefits paid directly 5.096.834
Total expense recognised in the income statement
Net liability in the balance sheet
Reconciliation of benefit obligations 4.04.417
DBO at start of the period 4.48.191 78.77
Service cost 161.66
Interest cost 671.015
Benefits paid directly by the Company 169.696 (199.04)
Extra payments or expenses/(income) (5.5) 145.19
Actuarial (gain)
0 (640.154)
DBO at the end of the period (718.48) 4.248.191
4.365.149
56
4.23 Employee retirement benefits
In accordance with Greek labour law, employees are entitled to compensation payments in the event of
dismissal or retirement with the amount of payment varying depending on the employee’s compensation,
length of service and manner of termination (dismissal or retirement). Employees who resign or are dismissed
with cause are not entitled to termination payments. The amount payable in the event of retirement is
equal to 40% of the amount which would be payable upon dismissal without cause.
The provision for employees’ retirement benefits is reflected in the attached balance sheet in accordance
with IAS 19 and is calculated, as at the balance sheet date (1 December 007), based on an independent
actuarial study performed by Hewitt. The net charge to the income statement of € 840.711 is reflected
under the personnel expenses (included in benefits and other staff expenses – refer to note 4.)
The results of the actuarial review of the provision for employee retirement benefits as computed by the
actuary are shown below:
Actuarial study analysis 2007 2006
Principal actuarial assumptions at 31/12/2007
Discount rate 4.7% 4%
Payroll increases 4,7% 4,7%
Average working life 0,18 0,65
Present value of obligations 4.65.149 4.48.191
Unrecognised actuarial net gain 71.685 1.57
Net liability in the balance sheet
5.096.834 4.261.448
Components of income statement charge 78.77
Service cost 671.015 161.66
Interest cost 169.696
Amortization of unrecognised net gain/(loss) 14.7
Settlement/Curtailment/Termination Loss 0 15.56
0 1.066.631
Total income statement charge 840.711
Movements in net liability/ .94.11
(asset) in the balance sheet 4.61.448 (199.04)
1.066.61
Net liability/(asset) at the beginning of the period (5.5) 4.261.448
840.711
Benefits paid directly 5.096.834
Total expense recognised in the income statement
Net liability in the balance sheet
Reconciliation of benefit obligations 4.04.417
DBO at start of the period 4.48.191 78.77
Service cost 161.66
Interest cost 671.015
Benefits paid directly by the Company 169.696 (199.04)
Extra payments or expenses/(income) (5.5) 145.19
Actuarial (gain)
0 (640.154)
DBO at the end of the period (718.48) 4.248.191
4.365.149
56
