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Notes to the Consolidated Financial Statements
30 June 2013
70 BRADKEN LIMITED ANNUAL REPORT 2013
Notes to the consolidated financial statements
30 June 2013
(continued)
20 Retirement benefit obligations (continued)
(e) Amounts recognised in profit or loss
2013
2012
$'000
$'000
Current service cost
1,112
870
Interest cost
2,112
2,305
Expected return on plan assets
(2,385)
(2,468)
Recognised net actuarial loss
1,404
179
Past service cost
138
106
Total included in employee benefits expense
2,381
992
(f) Amounts recognised in other comprehensive income
2013
2012
$'000
$'000
Actuarial (loss)/gain recognised in the year
5,633
(11,924)
(10,777)
(15,711)
(g) Principal actuarial assumptions
USA
Canada
USA
Canada
2013
2013
2012
2012
Discount rate
4.38%
4.60%
3.75%
4.60%
Expected long-term return on plan assets
7.00%
6.25%
7.00%
6.25%
Rate of compensation increase
N/A
N/A
N/A
N/A
(h) Employer contributions
(i) Historic summary
2013
2012
2011
2010
2009
$'000
$'000
$'000
$'000
$'000
56,530
52,110
24,653
30,643
27,599
(44,825)
(35,111)
(19,616)
(20,295)
(20,007)
(11,705)
(16,999)
(5,037)
(10,348)
(7,592)
Plan assets
Surplus / (deficit)
Defined benefit plan obligations
The Company selects the expected long-term rates of return on assets in consultation with its investment advisers and actuaries.
The rates are intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to
provide plan benefits, and the plans are assumed to continue in force as long as assets are expected to be invested. In
estimating the rates, appropriate consideration is given to historical performance for the major asset classes held or anticipated
to be held by the plans and to current forecasts of future rates of return for those asset classes. Cash flow and expenses are
taken into consideration to the extent that the expected return would be affected by them. Because assets are held in a qualified
trust, anticipated returns are not reduced for taxes.
Employer contributions to the defined benefit plans are based on recommendations by the plan actuaries. Actuarial assessments
are performed annually, and the last such assessments were made during June 2013.
Total employer contributions expected to be paid by Group companies for the year ending 30 June 2014 are $3,041,471.
Cumulative actuarial (losses)/gains recognised in
other comprehensive income
The amounts recognised in profit or loss are as follow:
The principal actuarial assumptions used (expressed as weighted averages) were as follows:
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Bradken Limited