IFRS Taxonomy 2011 – Illustrative examples

Employee benefits obligations

Examples from IAS 19 (B Illustrative disclosures) representing some of the disclosures required by IAS 19 for employee benefit obligations using block and detailed XBRL tagging.

The amounts recognised in the statement of financial position are as follows:

		Defined benefit pension plans		Post-employment medical benefits
		*20X2*	*20X1*	*20X2*	*20X1*
Present value of funded obligations		20,300	17,400	–	–
Fair value of plan assets		( 18,420)	( 17,280)	–	–
		1,880	120	–	–
Present value of unfunded obligations		2,000	1,000	7,337	6,405
Unrecognised actuarial gains (losses)		( 1,605)	840	( 2,707)	( 2,607)
Unrecognised past service cost		( 450)	( 650)	–	–
Net liability		1,825	1,310	4,630	3,798

Amounts in the statement of financial position:
	liabilities	1,825	1,400	4,630	3,798
	assets	–	( 90)	–	–
Net liability		1,825	1,310	4,630	3,798

The pension plan assets include ordinary shares issued by [name of reporting entity] with a fair value of 317 (20X1: 281). Plan assets also include property occupied by [name of reporting entity] with a fair value of 200 (20X1: 185).

The amounts recognised in profit or loss are as follows:

	Defined benefit pension plans		Post-employment medical benefits
	*20X2*	*20X1*	*20X2*	*20X1*
Current service cost	850	750	479	411
Interest on obligation	950	1,000	803	705
Expected return on plan assets	( 900)	( 650)
Net actuarial losses (gains) recognised in year	( 70)	( 20)	150	140
Past service cost	200	200
Losses (gains) on curtailments and settlements	175	( 390)
Total, included in ‘employee benefits expense’	1,205	890	1,432	1,256
Actual return on plan assets	600	2,250	–	–

Changes in the present value of the defined benefit obligation are as follows:

	Defined benefit pension plans		Post-employment medical benefits
	*20X2*	*20X1*	*20X2*	*20X1*
Opening defined benefit obligation	18,400	11,600	6,405	5,439
Service cost	850	750	479	411
Interest cost	950	1,000	803	705
Actuarial losses (gains)	2,350	950	250	400
Losses (gains) on curtailments	( 500)	–
Liabilities extinguished on settlements	–	( 350)
Liabilities assumed in a business combination	–	5,000
Exchange differences on foreign plans	900	( 150)
Benefits paid	( 650)	( 400)	( 600)	( 550)
Closing defined benefit obligation	22,300	18,400	7,337	6,405

Changes in the fair value of plan assets are as follows:

	Defined benefit pension plans
	*20X2*	*20X1*
Opening fair value of plan assets	17,280	9,200
Expected return	900	650
Actuarial gains and (losses)	( 300)	1,600
Assets distributed on settlements	( 400)	–
Contributions by employer	700	350
Assets acquired in a business combination	–	6,000
Exchange differences on foreign plans	890	( 120)
Benefits paid	( 650)	( 400)
	18,420	17,280

The group expects to contribute 900 to its defined benefit pension plans in 20X3.

The major categories of plan assets as a percentage of total plan assets are as follows:	*20X2*	*20X1*
European equities	30%	35%
North American equities	16%	15%
European bonds	31%	28%
North American bonds	18%	17%
Property	5%	5%

Principal actuarial assumptions at the end of the reporting period (expressed as weighted averages):

	20X2	20X1
Discount rate at 31 December	5.0%	6.5%
Expected return on plan assets at 31 December	5.4%	7.0%
Future salary increases	5%	4%
Future pension increases	3%	2%
Proportion of employees opting for early retirement	30%	30%
Annual increase in healthcare costs	8%	8%
Future changes in maximum state healthcare benefits	3%	2%

Assumed healthcare cost trend rates have a significant effect on the amounts recognised in profit or loss. A one percentage point change in assumed healthcare cost trend rates would have the following effects:

	One percentage point increase	One percentage point decrease
Effect on the aggregate of the service cost and interest cost	190	( 150)
Effect on defined benefit obligation	1,000	( 900)

Amounts for the current and previous four periods are as follows:

Defined benefit pension plans

	20X2	20X1	20X0	20W9	20W8
Defined benefit obligation	( 22,300)	( 18,400)	( 11,600)	( 10,582)	( 9,144)
Plan assets	18,420	17,280	9,200	8,502	10,000
Surplus/(deficit)	( 3,880)	( 1,120)	( 2,400)	( 2,080)	856
Experience adjustments on plan liabilities	( 1,111)	( 768)	( 69)	543	( 642)
Experience adjustments on plan assets	( 300)	1,600	( 1,078)	( 2,890)	2,777

Post-employment medical benefits

	20X2	20X1	20X0	20W9	20W8
Defined benefit obligation	7,337	6,405	5,439	4,923	4,221
Experience adjustments on plan liabilities	( 232)	829	490	( 174)	( 103)

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