Mandarin Oriental International Limited - Mandarin Oriental Hotel ...
Mandarin Oriental International Limited - Mandarin Oriental Hotel ...
Mandarin Oriental International Limited - Mandarin Oriental Hotel ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
11 Loan receivable<br />
Balance represents an interest-bearing mezzanine loan of US$12.0 million (2004: nil) provided in respect of the<br />
Boston hotel project.<br />
12 Pension plans<br />
The Group has a number of defined benefit pension plans, covering all the main territories in which it operates<br />
with the major plans relating to employees in Hong Kong and South East Asia. Most of the pension plans are final<br />
salary defined benefit plans and are funded.The assets of the funded plans are held independently of the Group’s<br />
assets in separate trustee administered funds.The Group’s major plans are valued by independent actuaries annually<br />
using the projected unit credit method.<br />
The principal actuarial assumptions used for accounting purposes at 31st December are as follows:<br />
2005 2004<br />
Weighted Weighted<br />
average average<br />
% %<br />
Discount rate applied to pension obligations 5.5 5.5<br />
Expected return on plan assets 6.0 6.0<br />
Future salary increases 6.0 5.0<br />
The expected return on plan assets is determined based on the expected long-term average returns on global<br />
equities of 6% to 9% per annum and global bonds of 3.5% to 5.5% per annum, and the long-term benchmark<br />
allocation of assets between equities and bonds in each plan.<br />
ANNUAL REPORT 2005 51