Page 89 - Annual Report 2015 EN
P. 89
Annual Report 2015
The provision for employees’ retirement benefits is reflected in the attached statement of financial position
in accordance with IAS 19R and is calculated, as at the balance sheet date (31 December 2015), based on
an independent actuarial study performed by Hewitt.
The results of any valuation depend upon the assumptions employed. Thus, as at 31 December 2015:
• If the discount rate used were 1.0% higher, then the DBO would be lower by about €1.40m.
• If the discount rate used were 1.0% lower, then the DBO would be higher by about €1.71m.
The results of the actuarial study for the provision for employee retirement benefits as computed by the
actuary are shown below:
Actuarial study analysis 2015 2014
Principal actuarial assumptions at 31 December 2015
Discount rate 2.41% 2.33%
Range of compensation increase 0%-3.0% 0%-3.0%
Plan duration
Present value of obligations 18.33 19.30
Net liability/(asset) in the balance sheet 8,629,796 8,258,359
8,629,796 8,258,359
Components of income statement charge 519,754 372,290
Service cost 191,792 203,687
Interest cost (122,046)
Recognition of past service cost 0
Settlement/curtailment/termination loss 204,075 461,176
Total income statement charge 915,621 915,107
Movements in net liability/(asset) in the balance sheet 8,258,359 5,738,188
Net liability/(asset) at the beginning of the period (339,955) (1,108,775)
Bene ts paid directly
Total expense recognised in the income statement 915,622 915,108
Total amount recognized in the OCI (204,230) 2,713,838
Net liability/(asset) in the balance sheet 8,629,796 8,258,359
Reconciliation of bene t obligations 8,258,359 5,738,188
DBO at start of the period 519,754 372,290
Service cost 191,792 203,687
Interest cost (1,108,775)
Bene ts paid directly by the Company (339,955)
Extra payments or expenses/(income) 204,076 461,177
Obligation of past service cost 0 (122,046)
Actuarial loss/(gain) 2,713,838
DBO at the end of the period (204,230) 8,258,359
8,629,796
Remeasurements 334,323 (2,680,835)
Liability gain/(loss) due to changes in assumptions (130,093) (33,003)
Liability experience gain/(loss) arising during the year 204,230
Total actuarial gain/(loss) recognised in OCI (2,713,838)
An actuarial gain (the difference between expected and actual DBO as at the end of 2015) of €204,230
arose during the year due to the following factors:
• Change in financial assumptions: the equivalent discount rate has increased from 2.33% to 2.41%,
producing a gain of €117,557. The inflation and salary increase assumptions have both decreased
producing a gain of €216,766. Thus, the change in financial assumptions gives rise to an overall
actuarial gain of €334,323.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
46 of 56
The provision for employees’ retirement benefits is reflected in the attached statement of financial position
in accordance with IAS 19R and is calculated, as at the balance sheet date (31 December 2015), based on
an independent actuarial study performed by Hewitt.
The results of any valuation depend upon the assumptions employed. Thus, as at 31 December 2015:
• If the discount rate used were 1.0% higher, then the DBO would be lower by about €1.40m.
• If the discount rate used were 1.0% lower, then the DBO would be higher by about €1.71m.
The results of the actuarial study for the provision for employee retirement benefits as computed by the
actuary are shown below:
Actuarial study analysis 2015 2014
Principal actuarial assumptions at 31 December 2015
Discount rate 2.41% 2.33%
Range of compensation increase 0%-3.0% 0%-3.0%
Plan duration
Present value of obligations 18.33 19.30
Net liability/(asset) in the balance sheet 8,629,796 8,258,359
8,629,796 8,258,359
Components of income statement charge 519,754 372,290
Service cost 191,792 203,687
Interest cost (122,046)
Recognition of past service cost 0
Settlement/curtailment/termination loss 204,075 461,176
Total income statement charge 915,621 915,107
Movements in net liability/(asset) in the balance sheet 8,258,359 5,738,188
Net liability/(asset) at the beginning of the period (339,955) (1,108,775)
Bene ts paid directly
Total expense recognised in the income statement 915,622 915,108
Total amount recognized in the OCI (204,230) 2,713,838
Net liability/(asset) in the balance sheet 8,629,796 8,258,359
Reconciliation of bene t obligations 8,258,359 5,738,188
DBO at start of the period 519,754 372,290
Service cost 191,792 203,687
Interest cost (1,108,775)
Bene ts paid directly by the Company (339,955)
Extra payments or expenses/(income) 204,076 461,177
Obligation of past service cost 0 (122,046)
Actuarial loss/(gain) 2,713,838
DBO at the end of the period (204,230) 8,258,359
8,629,796
Remeasurements 334,323 (2,680,835)
Liability gain/(loss) due to changes in assumptions (130,093) (33,003)
Liability experience gain/(loss) arising during the year 204,230
Total actuarial gain/(loss) recognised in OCI (2,713,838)
An actuarial gain (the difference between expected and actual DBO as at the end of 2015) of €204,230
arose during the year due to the following factors:
• Change in financial assumptions: the equivalent discount rate has increased from 2.33% to 2.41%,
producing a gain of €117,557. The inflation and salary increase assumptions have both decreased
producing a gain of €216,766. Thus, the change in financial assumptions gives rise to an overall
actuarial gain of €334,323.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
46 of 56
