Note 8 - Pension Costs and Obligations

Consolidated

(Amounts in USD 1,000)

2017

2016

The amount recognized in the income statement is as follows:

Service cost

1,768

1,690

Interest expense

289

275

Expected return on plan assets

-237

-221

Administration cost

35

25

Social contribution

236

187

Impact of curtailment/settlement

-180

-445

Net periodic pension cost (see Note 18)

1,911

1,511

 

The development in the defined benefit obligation is as follows:

Beginning of year

11,498

10,817

Current service cost

1,768

1,690

Interest expense

289

275

Aquisition (disposal)

-

-505

Benefits paid

-417

-302

Remeasurements loss/(gain)

-835

-718

Exchange differences

597

241

End of year

12,900

11,498

 

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

Beginning of year

10,005

8,622

Expected return on plan assets

237

221

Acquisition (disposal)

-

-240

Employer's contribution

2,030

1,986

Benefits paid

-416

-301

Remeasurements loss/(gain)

-1,302

-493

Exchange differences

509

209

End of year

11,063

10,005

 

 

Consolidated

(Amounts in USD 1,000)

2017

2016

Present value of funded obligations

12,900

11,498

Fair value of plan assets

-11,063

-10,005

Social contribution

-

-

Unrecognized net actuarial loss/(gain)

-

-

Present value of funded obligations

1,837

1,493

Present value of overfunded asset

156

199

Liability in the statement of financial position

1,993

1,692

 

Financial assumptions:

Discount rate

2.40%

2.60%

Expected return on funds

2.40%

2.60%

Expected wage adjustment

2.50%

2.50%

Adjustm. of the basic National Insur. amount

2.25%

2.25%

Expected pension increase

0.50%

0.00%

Number of employees in defined benefit scheme

338

326

Board Of Directors

Financial Statements

Notes