Kesko's Annual Report 2009
Kesko's Annual Report 2009
Kesko's Annual Report 2009
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
NOTE 20<br />
Kesko financial statements <strong>2009</strong><br />
Pension assets<br />
The Group operates several retirement plans. In Finland, employees' pension insurance is partly arranged with insurance companies<br />
and partly by the Kesko Pension Fund, whose department A granting additional benefits was closed on 9 May 1998. Pension plans<br />
arranged with the Kesko Pension Fund have been treated as defined benefit plans.<br />
As regards foreign subsidiaries, the plan adopted in the Norwegian subsidiary is the only pension plan classified as a defined benefit<br />
plan. The nature of the pension plan in Norway and Norwegian legislation changed during the 2008 accounting period to the<br />
effect that a significant number of the company's employees transferred from the defined benefit plan. At 31 December <strong>2009</strong>, the net<br />
debt relating to the defined benefit plan in Norway was €0.4 million (€0.5 million).<br />
The pension plans in other foreign subsidiaires are arranged in accordance with local regulations and practices. They do not contain<br />
significant defined benefit plans.<br />
The defined benefit liability recognised in the balance sheet in respect of the Kesko Pension Fund is determined as follows:<br />
€ million <strong>2009</strong> 2008<br />
Present value of funded obligations -525.1 -530.4<br />
Fair value of plan assets 871.6 819.5<br />
Deficit/surplus 346.5 289.1<br />
Unrecognised actuarial gains (-)/losses (+) -31.4 11.1<br />
Net assets (+)/liabilities (-) recognised in the balance sheet 315.2 300.3<br />
The movements of the present value of the obligation are as follows:<br />
Plan obligation at 1 Jan. 530.4 560.6<br />
Current services cost 12.7 15.1<br />
Interest cost 28.6 28.8<br />
Benefits paid -27.7 -27.2<br />
Actuarial gains (-)/losses (+) -24.3 -47.0<br />
Others 5.5<br />
Plan obligation at 31 Dec. 525.1 530.4<br />
The movement in the fair value of plan assets is as follows:<br />
Plan assets at 1 Jan. 819.5 897.0<br />
Expected return on plan assets 54.9 63.2<br />
Contributions to plan 6.8 17.8<br />
Benefits paid -27.7 -27.2<br />
Actuarial gains (-)/losses (+)<br />
Others<br />
18.2 -131.2<br />
Plan assets at 31 Dec. 871.6 819.5<br />
The amounts recognised in the income statement were as follows:<br />
Current service cost -12.7 -15.1<br />
Interest cost -28.6 -28.8<br />
Expected return on plan assets 54.9 63.2<br />
Change -5.5<br />
Actuarial gains (-)/losses (+) 1.2<br />
Total amount recognised in the income statement 8.2 20.5<br />
Changes in net assets recognised in the balance sheet:<br />
Opening balance 300.3 262.1<br />
Income/costs recognised in the income statement 8.2 20.5<br />
Contributions to plan 6.8 17.8<br />
Closing balance 315.2 300.3<br />
111