Note 8 - Pension Costs and Obligations

Consolidated

(Amounts in USD 1,000)

2016

2015

The amount recognized in the income statement is as follows:

Service cost

1,690

2,491

Interest expense

275

285

Expected return on plan assests

-221

-196

Administration cost

25

21

Social contribution

187

269

Impact of curtailment/settlement

-445

-693

Net periodic pension cost (see Note 19)

1,511

2,177

The development in the defined benefit obligation is as follows:

Beginning of year

10,817

12,546

Current service cost

1,690

2,491

Interest expense

275

285

Aquisition (disposal)

-505

-

Benefits paid

-302

-319

Remeasurements loss/(gain)

-718

-1,889

Exchange differences

241

-2,002

End of year

11,498

11,113

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

Beginning of year

8,622

8,735

Expected return on plan assets

221

196

Acquisition (disposal)

-240

-

Employer's contribution

1,986

2,393

Benefits paid

-301

-317

Remeasurements loss/(gain)

-493

-493

Exchange differences

209

-1,596

End of year

10,005

8,918

Consolidated

(Amounts in USD 1,000)

2016

2015

Present value of funded obligations

11,498

11,113

Fair value of plan assets

-10,005

-8,918

Social contribution

-

-

Unrecognized net actuarial loss/(gain)

-

-

Present value of funded obligations

1,493

2,195

Present value of overfunded asset

199

-

Liability in the statement of financial position

1,692

2,195

Financial assumptions:

Discount rate

2.60%

2.70%

Expected return on funds

2.60%

2.70%

Expected wage adjustment

2.50%

2.50%

Adjustm. of the basic National Insur. amount

2.25%

2.25%

Expected pension increase

0.00%

0.00%

Number of employees in defined benefit scheme

326

334

Board Of Directors

Financial Statements

Notes