Page 27 - KELAG Annual Report 2017
P. 27

Financial liabilities are recognised at fair value less transaction costs. A premium, debt discount or
                                      other difference between the amount received and the repayment amount is spread over the
                                      term using the effective interest method and recognised in the financial result.

                                      The provisions for current pensions, claims to future pensions and pension-related obligations are
                                      calculated using the projected unit credit method in accordance with IAS 19. The Group fully
                                      recognises the remeasurement gains or losses on the net liability from defined benefit plans in
                                      other comprehensive income in the period in which they occur. Any remeasurement gain or loss
                                      on the net liability from defined benefit plans is transferred directly to accumulated profits/losses
                                      and not reclassified to profit or loss in subsequent periods. The net interest expense is recorded
                                      under interest expenses in the income statement.


                                      Pension obligations are determined on the basis of actuarial reports. The biometrical assumptions
                                      used were the “AVÖ 2008-P – Rechnungsgrundlagen für die Pensionsversicherung  – Pagler &
                                      Pagler” for employees. Apart from death and invalidity or retirement upon reaching the imputed
                                      pension age, the actuarial experts – based on past experience – did not take any other reasons for
                                      leaving the company into account, such as employee turnover or similar reasons.

                                      The amount of the pensions depends on the period of service until completion in the respective
                                      group entity. The pension age taken as a basis for the calculations is the earliest possible age at
                                      which (early) retirement is possible in accordance with the relevant statutory regulations, taking
                                      transitional regulations into account.







                                      Based on company agreements and individual contracts, there is an obligation to pay pensions
                                      to certain employees under certain circumstances after they have retired. Earmarked pension
                                      trust funds exist for these defined benefit obligations at Valida Pension AG. There is an obligation
                                      on the part of the employer to make additional capital contributions. The pension fund assets are
                                      not available to the creditors of the Group, nor can they be paid directly to the Group. Fair value
                                      is based on market price information and, in the case of quoted securities, it is the published bid
                                      price. The pension fund assets are accounted for as plan assets as defined in IAS 19 and netted
                                      with the provisions for current pensions and claims to future pensions.

                                      The pension trust invests the pension trust funds mainly in different investment funds, with due
                                      regard to the regulations of the PKG (Austrian Pension Fund Act).
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