The North / South Language Body Annual Report & Accounts 2009

14.2 ANALYSIS OF CHANGE IN CASH AND CASH EQUIVALENTS2009 2009 2008 2008€ STG£ € STG£Cash in bank at 1 January 766,396 729,992 365,200 270,723Net Cash Inflow / (Outflow) for operatingactivities (497,568) (491,246) 401,196 459,269Cash in Bank at 31 December 268,828 238,746 766,396 729,99215. PENSION OBLIGATIONSPension obligations are included in the financial statements for the year ended 31 December 2009 as stated inFRS 17 ‘Retirement Benefits’. Comparative data for the year ended 31 December 2008 was regrouped andreclassified in this regard, to ensure comparability with the current year figures.15.1 Assessment of Liabilities and CostsThe assessed liabilities depend on the benefits payable from the scheme in future. The benefits are defined in thescheme’s trust deed and rules as amended from time to time.A valuation of the scheme’s liabilities as at 31 December 2007, 31 December 2008 and 31 December 2009using membership data supplied by the scheme’s administrators was carried out. The liabilities and costs havebeen assessed using the projected unit method.15.2 Value of AssetsThe scheme is unfunded and therefore there are no assets of the scheme held in respect of employees or exemployeesof Foras na Gaeilge. Benefits paid to pensioner members are funded through the employeecontributions with any excess being met by Foras na Gaeilge.15.3 Assumptions - GeneralIn order to assess the liabilities and costs it has been necessary to make assumptions about the future economicand demographic events that will affect the level of the benefits promised. These assumptions should bemutually compatible and lead to the best estimate of the future cash flows that will arise from the scheme’sliabilities.A full list of the assumptions for the 31 December 2009 accounting date and the methodology of deriving theseassumptions is given below. Assumptions for the previous accounting dates have been derived on a consistentbasis.15.3.1 Economic Assumptions - Assumed annual rateDiscount RateNorthern Ireland:Republic of Ireland:Increase in Retail PricesIndex:Northern Ireland:Republic of Ireland:5.70% – The rounded average annual yield on over 15 year AA ratedcorporate bonds.5.10% - The rounded average annual yield on over 10 year AA ratedEurozone corporate bonds as recorded by iBoxx adjusted for the duration ofthe scheme’s liabilities.3.70% - The difference between yields on fixed coupon gilts and indexlinkedgilts.2.50% - Based on ECB inflation target plus an adjustment for the excess ofIrish over Euroland CPI.26