Note 8 - Pension Costs and Obligations

 

CONSOLIDATED

(Amounts in USD 1,000)

2015

2014

     

The amount recognized in the income statement is as follows:

   

Service cost

2,491

2,535

Interest expense

285

93

Administration cost

21

25

Social contribution

269

266

Impact of curtailment/settlement

-889

-768

Net periodic pension cost (see Note 19)

2,177

2,151

     

The development in the defined benefit obligation is as follows:

   

Beginning of year

12,546

12,911

Current service cost

2,491

2,535

Interest expense

285

506

Aquisition (disposal)

-

-

Payroll tax of employer contribution, assets

-296

-315

Benefits paid

-319

-350

Remeasurements loss/(gain)

-1,889

42

Exchange differences

-2,002

-2,783

End of year

10,817

12,546

     

The development in the fair value of plan assets is as follows:

   

Beginning of year

8,735

10,133

Expected return on plan assets

196

413

Acquisition (disposal)

-

-

Administration cost

-

-

Employer contribution

2,393

2,548

Payroll tax of employer contribution, assets

-296

-315

Benefits paid

-317

-303

Remeasurements loss/(gain)

-493

-1,803

Exchange differences

-1,596

-1,938

End of year

8,622

8,735

 

CONSOLIDATED

(Amounts in USD 1,000)

2015

2014

     

Present value of funded obligations

10,817

12,546

Fair value of plan assets

-8,622

-8,735

Social contribution

-

-

Unrecognized net actuarial loss/(gain)

-

-

Present value of funded obligations

2,195

3,812

Present value of unfunded obligations

-

-

Liability in the statement of financial position

2,195

3,812

     

Financial assumptions:

   

Discount rate

2.70%

2.30%

Expected return on funds

2.70%

2.30%

Expected wage adjustment

2.50%

2.75%

Adjustment of the basic National Insurance amount

2.25%

2.50%

Expected pension increase

0.00%

0.00%

     

Development last two years

2015

2014

December 31

   

Present value of defined benefit obligation

10,817

12,546

Fair value of plan assets

8,622

8,735

Deficit in the plan

2,195

3,812

Experience adjustments on plan liabilities, gain/(loss)

-

-

Experience adjustments on plan assets, gain/(loss)

-

-