Page 97 - 2board23full
P. 97
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 (31 December 2009), based on an independent actuarial study performed
by Hewitt. The net charge to the income statement of € 1.029.663 is reflected under the personnel expenses (included
in benefits and other staff expenses – refer to note 4.2).
The results of the actuarial review of the provision for employee retirement benefits as computed by the actuary are
shown below:
Actuarial study analysis 2009 2008
Principal actuarial assumptions at 31/12/2009 5,25% 5,4%
3,0% 4,4%
Discount rate 18,86 19,43
Payroll increases 4.370.620
Average working life 5.849.526 1.471.030
1.553.452
Present value of obligations (968.962) 0
Unrecognised actuarial net gain 6.434.016 5.841.650
Unrecognized Past Service Cost
530.410 599.265
Net liability in the balance sheet 231.716 202.983
Components of income statement charge (53.215) (14.627)
320.752
Service cost 1.029.663 46.650
Interest cost 834.271
Amortization of unrecognised net gain/(loss) 5.841.650
Settlement/Curtailment/Termination Loss (437.297) 5.096.834
1.029.663 (89.455)
Total income statement charge 6.434.016 834.271
Movements in net liability/(asset) in the balance sheet
4.370.620 5.841.650
Net liability/(asset) at the beginning of the period 530.410
Benefits paid directly 231.716 4.365.149
Total expense recognised in the income statement 599.265
(437.297) 202.983
Net liability in the balance sheet 345.977 (89.455)
Reconciliation of benefit obligations 968.962 51.866
0
DBO at start of the period (160.862)
Service cost 5.849.526 (759.188)
Interest cost 4.370.620
Benefits paid directly by the Company
Extra payments or expenses/(income)
Obligation of past service cost
Actuarial gain
DBO at the end of the period
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 60 OF 69
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 (31 December 2009), based on an independent actuarial study performed
by Hewitt. The net charge to the income statement of € 1.029.663 is reflected under the personnel expenses (included
in benefits and other staff expenses – refer to note 4.2).
The results of the actuarial review of the provision for employee retirement benefits as computed by the actuary are
shown below:
Actuarial study analysis 2009 2008
Principal actuarial assumptions at 31/12/2009 5,25% 5,4%
3,0% 4,4%
Discount rate 18,86 19,43
Payroll increases 4.370.620
Average working life 5.849.526 1.471.030
1.553.452
Present value of obligations (968.962) 0
Unrecognised actuarial net gain 6.434.016 5.841.650
Unrecognized Past Service Cost
530.410 599.265
Net liability in the balance sheet 231.716 202.983
Components of income statement charge (53.215) (14.627)
320.752
Service cost 1.029.663 46.650
Interest cost 834.271
Amortization of unrecognised net gain/(loss) 5.841.650
Settlement/Curtailment/Termination Loss (437.297) 5.096.834
1.029.663 (89.455)
Total income statement charge 6.434.016 834.271
Movements in net liability/(asset) in the balance sheet
4.370.620 5.841.650
Net liability/(asset) at the beginning of the period 530.410
Benefits paid directly 231.716 4.365.149
Total expense recognised in the income statement 599.265
(437.297) 202.983
Net liability in the balance sheet 345.977 (89.455)
Reconciliation of benefit obligations 968.962 51.866
0
DBO at start of the period (160.862)
Service cost 5.849.526 (759.188)
Interest cost 4.370.620
Benefits paid directly by the Company
Extra payments or expenses/(income)
Obligation of past service cost
Actuarial gain
DBO at the end of the period
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 60 OF 69
