This excerpt taken from the CEDC 8-K filed Oct 17, 2005.
The Companys employees are entitled to retirement bonuses and payments for long-service (jubilee awards) and accordingly the Company provides for the current value of the liability related to these benefits. A provision is calculated based on the terms set in the collective labor agreement. The amount of the provision for retirement bonuses depends on the age of employees and the pre-retirement time of work for the Company and equals 100%-800% of the monthly salary. The amount of jubilee awards is paid for employees who serve the Company for more than 15 years and ranges from 150% to 800% of the monthly salary depending on the number of years of service.
The Company does not create a specific fund designated for the payments and all payments related to the benefits are charged to the income statement. The provision for the employees benefits is calculated annually using the projected unit method and any losses or gains resulting from the valuation are immediately recognized in the income statement.
The Company also contributes to State and privately managed defined contribution plans. Contributions to defined contribution plans are charged to the income statement in the period in which they are incurred.
Przedsiebiorstwo POLMOS Białystok
NOTES TO FINANCIAL STATEMENTS
Amounts in columns expressed in thousands of U.S. dollars