Annual Report 2005/06 THE WORLD OF SOUND - Sonova

31. Employee benefitsPhonak Group’s retirement plans include defined-benefit pension plans in Switzerland, Austria, Canada, Germany and Norway. Theseplans are both funded and unfunded and are accounted for as defined benefit plans according to IAS 19, with recent actuarial valuations.The plans of Norway and Canada are not material. The results of the material plans are summarized below:1,000 CHFAmounts recognized in the balance sheetPresent value of funded obligationsFair value of plan assetsNet present value of funded plansPresent value of unfunded obligationsUnrecognized actuarial lossesTotal assets, netAmounts unrecognized in line with IAS 19.58b(ii)Assets in the balance sheet, net31.3.2006(96,947)102,7805,833(1,067)3,1357,901(5,833)2,06831.3.2005(82,031)84,7552,724(1,087)3,1354,772(2,724)2,048Amounts in the balance sheetLiabilitiesAssetsNet assets in the balance sheet(1,067)3,1352,068(1,087)3,1352,048Amounts recognized in the income statementCurrent service costInterest costExpected return on plan assetsActuarial losses recognized in line with IAS 19.58AWaiver of the employer contribution reserveTotal employee benefit expenses5,4513,132(4,238)1,0345,3794,1002,714(3,611)3,3656,568Movements in the assets, netAt beginning of the yearTotal employee benefit expensesContributions paidAt end of year2,048(5,379)5,3992,0682,912(6,568)5,7042,048Principal actuarial assumptionsDiscount rateFuture salary increasesFuture pension increasesExpected return on plan assetsFluctuation rate3.25%1.75%0%4%10%3.75%2.50%0%5%10%Consolidated Financial Statements79