Page 96 - Annual_Report_2016
P. 96
Financial Statements aia.gr
Actuarial study analysis 2016 2015
Principal actuarial assumptions at 31 December 2015 1.79% 2.41%
Discount rate 0%-3.0% 0%-3.0%
Range of compensation increase
Plan duration 17.38 18.33
Present value of obligations 10,148,627 8,629,796
Net liability/(asset) in the balance sheet 10,148,627 8,629,796
Components of income statement charge
Service cost 389,994 519,754
Interest cost 207,277 191,792
Recognition of past service cost 443,201
Settlement/curtailment/termination loss 113,043 0
Total income statement charge 1,153,515 204,075
Movements in net liability/(asset) in the balance sheet 915,621
Net liability/(asset) at the beginning of the period 8,629,796
Benefits paid directly (146,445) 8,258,359
Total expense recognised in the income statement (339,955)
Total amount recognized in the OCI 1,153,514
Net liability/(asset) in the balance sheet 511,762 915,622
Reconciliation of benefit obligations (204,230)
DBO at start of the period 10,148,627 8,629,796
Service cost
Interest cost 8,629,796 8,258,359
Benefits paid directly by the Company 389,993 519,754
Extra payments or expenses/(income) 207,277 191,792
Obligation of past service cost
Actuarial loss/(gain) (146,445) (339,955)
DBO at the end of the period 113,043 204,076
Remeasurements 443,201 0
Liability gain/(loss) due to changes in assumptions 511,762
Liability experience gain/(loss) arising during the year (204,230)
Total actuarial gain/(loss) recognised in OCI 10,148,627 8,629,796
(742,118) 334,323
230,356 (130,093)
(511,762) 204,230
An actuarial loss (the difference between expected and actual DBO as at the end of 2016) of €511,762 arose
during the year due to the following factors:
• Change in financial assumptions: the equivalent discount rate decreased from 2.41% to 1.79%, producing
a loss of €939,691. The inflation and salary increase assumptions have both decreased producing a gain of
€197,573. Thus, the change in financial assumptions gives rise to an overall actuarial loss of €742,118.
• Experience: gain of €230,356 mainly due to population mobility being higher than expected.
According to IAS19 Revised, the entire actuarial gains or losses that arise in each accounting period are
recognized immediately in the Statement of Other Comprehensive Income (OCI). In this case, the loss
arising over 2016 (i.e. €511,762) is recognized as a loss in the OCI statement.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
49 of 57
Actuarial study analysis 2016 2015
Principal actuarial assumptions at 31 December 2015 1.79% 2.41%
Discount rate 0%-3.0% 0%-3.0%
Range of compensation increase
Plan duration 17.38 18.33
Present value of obligations 10,148,627 8,629,796
Net liability/(asset) in the balance sheet 10,148,627 8,629,796
Components of income statement charge
Service cost 389,994 519,754
Interest cost 207,277 191,792
Recognition of past service cost 443,201
Settlement/curtailment/termination loss 113,043 0
Total income statement charge 1,153,515 204,075
Movements in net liability/(asset) in the balance sheet 915,621
Net liability/(asset) at the beginning of the period 8,629,796
Benefits paid directly (146,445) 8,258,359
Total expense recognised in the income statement (339,955)
Total amount recognized in the OCI 1,153,514
Net liability/(asset) in the balance sheet 511,762 915,622
Reconciliation of benefit obligations (204,230)
DBO at start of the period 10,148,627 8,629,796
Service cost
Interest cost 8,629,796 8,258,359
Benefits paid directly by the Company 389,993 519,754
Extra payments or expenses/(income) 207,277 191,792
Obligation of past service cost
Actuarial loss/(gain) (146,445) (339,955)
DBO at the end of the period 113,043 204,076
Remeasurements 443,201 0
Liability gain/(loss) due to changes in assumptions 511,762
Liability experience gain/(loss) arising during the year (204,230)
Total actuarial gain/(loss) recognised in OCI 10,148,627 8,629,796
(742,118) 334,323
230,356 (130,093)
(511,762) 204,230
An actuarial loss (the difference between expected and actual DBO as at the end of 2016) of €511,762 arose
during the year due to the following factors:
• Change in financial assumptions: the equivalent discount rate decreased from 2.41% to 1.79%, producing
a loss of €939,691. The inflation and salary increase assumptions have both decreased producing a gain of
€197,573. Thus, the change in financial assumptions gives rise to an overall actuarial loss of €742,118.
• Experience: gain of €230,356 mainly due to population mobility being higher than expected.
According to IAS19 Revised, the entire actuarial gains or losses that arise in each accounting period are
recognized immediately in the Statement of Other Comprehensive Income (OCI). In this case, the loss
arising over 2016 (i.e. €511,762) is recognized as a loss in the OCI statement.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
49 of 57
