Financial Statements - Chemring Group PLC

C H E M R I N GG R O U P P L CNotes to the Financial Statements- continued9. PENSIONS - continuedThe figures shown above were calculated on the basis of the following assumptions:20032002Discount rateRate of increase in salariesRate of increase in deferred pensionsRate of increase in pensions in payment (where applicable)Inflation assumption6.1%3.9-4.9%2.9-5.0%2.9%2.9%6.1%3.4-4.4%2.4-5.0%2.4%2.4%Analysis of movement in the deficit in the schemes during the year:Opening deficit in the schemesCurrent service costContributionsOther finance costsActuarial lossesClosing deficit in the schemes2003£000(13,467)(802)1,030(851)(39)(14,129)2002£000(9,137)(785)889(468)(3,966)(13,467)Amounts that would have been included within the financial statements for the year ended 31 October 2003 had FRS17 beenapplied are as follows:Amounts included within operating profit:Current service cost2003£0008022002£000785Amounts included as other finance costs:Expected return on scheme assetsDiscount on scheme liabilitiesNet charge2003£0001,093(1,944)(851)2002£0001,341(1,809)(468)P 38Amounts that would have been included within the statement of total recognised gains and losses for the year ended31 October 2003 had FRS17 been applied are shown below, expressed in monetary amounts and as a percentage of:(i) scheme assets at the balance sheet date;(ii) present value of the scheme liabilities at the balance sheet date.Difference between actual and expected returnon scheme assets (i)Experience gains and losses arising on scheme liabilities (ii)Effects of changes in assumptions underlying the present value£0004552,5172003%2.27.3£000(4,333)(217)of the scheme liabilities (ii)Total actuarial losses(3,011)(39)(8.7)(0.1)584(3,966)2002%(23.7)(0.7)1.8(12.5)