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77
APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
22. RETIREMENT BENEFIT OBLIGATIONS
(a) Superannuation plans
The Company operates superannuation plans under which eligible employees and their dependants are entitled to benefits on retirement,
disability or death. Employees contribute to the plans at various percentages of their wages and salaries. The respective employer entities
within the consolidated entity also contribute to the plans at rates recommended by actuaries, industrial awards or the
Superannuation
Guarantee Charge
legislation. The continuation of contributions, except those made pursuant to an award set down under a national wage
case or the S
uperannuation Guarantee Charge
legislation, are not legally enforceable.
Scheme information
The defined benefit section of the scheme is closed to new members. All new members receive accumulation only benefits.
(b) Balance sheet amounts
The amounts recognised in the balance sheet are determined as follows:
2011
$’000
2010
$’000
Australian shares
2,890
4,293
International shares
2,890
3,553
Other
4,922
6,957
Fair value of defined benefit scheme assets
10,702
14,803
Present value of the defined benefit obligation
(12,396)
(15,375)
Shortfall of assets
(1,694)
(572)
Unrecognised net loss
3,165
2,090
Net asset
1,471
1,518
Reconciliation of the defined benefit obligation
Defined benefit obligation at beginning of the year
15,375
18,157
Company service cost
453
508
Interest cost
714
841
Estimated member contributions
185
211
Estimated benefit payments and tax
(4,741)
(4,045)
Expected defined benefit obligation at end of the year
11,986
15,672
Actual defined benefit obligation at end of the year
12,396
15,375
Actuarial gain/(loss) on defined benefit obligation
(410)
297
Reconciliation of the fair value of scheme assets
Value of assets at beginning of the year
14,803
17,175
Expected return on assets
897
1,059
Estimated Employer contributions
522
673
Estimated member contributions
185
211
Estimated benefit payments and tax
(4,741)
(4,045)
Expected market value of assets at end of the year
11,666
15,073
Actual value of assets at end of the year
10,702
14,803
Actuarial gain/(loss) on assets
(964)
(270)
The Group has recognised an asset in the balance sheet in respect of its defined benefit superannuation arrangements. The APN
Superannuation Scheme does not impose a legal liability on the Group to cover any deficit that exists in the scheme. If the scheme
were wound up, there would be no legal obligation on the Group to make good any shortfall. The trust deed of the scheme states that
if the scheme winds up, the remaining assets are to be distributed by the trustee of the scheme in an equitable manner as it sees fit.
The Group may at any time, by notice to the trustee, terminate its contributions. The Group has a liability to pay the monthly contributions
due prior to the effective date of the notice, but there is no requirement for the Group to pay any further contributions, irrespective of the
financial condition of the scheme.