Page 39 - Kitron Annual Report 2011

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Notes to the consolidated financial statements
Employees in Kitrons’s Norwegian entites are covered by pension plans which give the right to futre benefits
according to Norwegian law. The plans comprise defined contribution plans for the Swedish and Norwegian
entities, as well as early retirement schemes (AFP) for some Norwegian employees. Furthermore the pension
obligations below include life-long benefits to a former CEO.
The new AFP-scheme, in force from 1 January 2011, is a defined benefit multi-enterprise scheme, but is recog-
nised in the accounts as a defined contribution scheme until reliable and sufficient information is available for
the group to recognise its proportional share of pension cost, pension liability and pension funds in the scheme.
The company’s liabilities are therefore not recognised as debt in the balance sheet.
The AFP-liability following the old scheme was recognised in the balance sheet as debt and was recognised as
income in 2010, with the exception of the liability relating to previous employees who are now retirees in this
scheme.
The pension obligation at the year also includes a provision of TNOK 2 594 (2010: TNOK 3 724) to cover an
expected payment relating to undercoverage in the former AFP-scheme. The provision has been recognised in
the balance sheet as a pensjon obligation
All pension plans are unfunded.
The company is obliged to have pension plans according to the Norwegian mandatory service pension act. The
company’s contribution-based pension scheme complies with these requirments.
Carrying amount of the obligation
(Amounts in NOK 1000)
2011
2010
Pension commitments
8 921
12 076
Costs recognised in the profit and loss account (incl in note 6)
Pension costs defined benefit plans
1 517
(5 568)
Defined pension benefit plans
(Amounts in NOK 1000)
2011
2010
Carrying amount of the obligation is determined as follows
Present value of accrued commitments in unfunded defined benefit plans
(14 387)
(17 721)
Unrecognised actuarial gains and losses
5 466
5 645
Net commitments in unfunded defined benefit plans
(8 921)
(12 076)
Hereof payroll tax on the pension obligations
1 102
1 492
Net pension commitment in the balance sheet
(8 921)
(12 076)
Net pension costs comprise
(Amounts in NOK 1000)
2011
2010
Present value of pension earnings for the year
-
436
Interest cost
614
724
Service cost
-
4 142
Curtailment of the old AFP scheme
-
(12 044)
Amortised actuarial gain and losses
903
1 174
Total, included in payroll costs
1 517
(5 568)
Note 23 Retirement benefit obligations