197
The adoption of IAS 19 (revised) had the following effects, which have been reflected in the consolidated financial statements:
(in millions of Euro)
31 December 2012
1 January 2012
Reserves
2
-
Net profit/(loss) for the year
(2)
-
Impact on equity attributable to the Group
-
-
Employee benefit obligations
-
-
(in millions of Euro)
2012
Finance costs
(2)
Deferred taxes
-
Net profit/(loss) for the year
(2)
Restatement of comparative figures at 31 December 2012
following application of IAS 19 (revised)
As from 1 January 2013, the Group has applied IAS 19 (revised) to
measure the Group’s employee benefit obligations; the revised
version of this standard has resulted in the following main
changes:
• the return on plan assets recognised in net interest expense
must be calculated using the discount rate applying to plan
liabilities and no longer using the expected rate of return on
plan assets;
• past service costs must be recognised immediately in profit or
loss in the period a plan is amended and not on a straight-line
As a result, the application of the revised standard has
involved recognising Euro 2 million more in “Finance costs”
at 31 December 2012, with a consequent adjustment of Euro 2
million to “Net profit/(loss) for the year” and “Reserves”.
Pension plan amendments in 2013
The following plans were amended during 2013:
• Draka Comteq Funded Plan in Norway: as a result of
individual negotiations, the obligations relating to
non-active members have been almost completely
transferred to an insurance company; this has resulted
basis over subsequent periods until such time as the benefits
are vested;
• the administration costs of managing plan assets must be
recognised as they are incurred in profit or loss, where they
are classified as operating costs and no longer as finance
costs.
In accordance with the IAS 19 transition rules, the Group has
applied the amendments to IAS 19 retrospectively from 1 January
2013 by adjusting the balances in the statement of financial
position at 1 January 2012 and at 31 December 2012, as well as
the previously published figures in the 2012 income statement.
in the recognition of a gain in the income statement
of approximately Euro 2 million and in a corresponding
reduction in liabilities;
• Draka UK Pension Plan in Great Britain: the plan has been
converted from a defined benefit to a defined contribution
plan for future benefits with effect from 31 December 2013.
This conversion has resulted in the recognition of a gain in
the income statement of approximately Euro 0.3 million.
Both the above gains have been classified as non-recurring
items in the 2013 income statement.
