notes to the financial statements - Investor Relations

CWT Limited
106
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
28 EMPLOYEE BENEFITS (CONT’D)
Subordinated employee benefit liabilities
A newly acquired subsidiary has created an Employee Cumulative Severance Benefit Programme (ECSBP). This programme
represents a termination benefit which is paid in 3 instalments upon leaving of the Company. Such benefit is granted to
employees at the Management’s discretion. Entitlement to benefits is received after reaching 2 years of service with the
subsidiary.
An amount of $1,624,000 (2010: nil) is included in administrative expenses to recognise the Group’s employee benefit liability
under this program.
29 RETIREMENT BENEFIT OBLIGATION
The present value of the funded obligations and the fair value of the plan assets were determined as at 31 December 2011
by a qualified actuary.
Group
2011
$’000
Present value of funded obligations 10,733
Fair value of plan assets (7,631)
Deficit in the plan 3,102
Unrecognised actuarial losses (1,718)
Liability in the statement of financial position 1,384
Movement in the defined benefit obligation is as follows:
Group
2011
$’000
Defined benefit obligations at 1 January –
Acquisition through business combinations 13,172
Service cost 703
Interest cost 163
Change in assumptions 454
Actuarial gains/losses (958)
Benefits paid (1,472)
Exchange differences (1,329)
Defined benefit obligations at 31 December 10,733