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This excerpt taken from the ICI 6-K filed Mar 21, 2007. Employee Benefits, the sensitivity of a 1% change in the healthcare cost trend rate on service and interest cost, as well as on the defined benefit obligation, is shown in note
26.
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This excerpt taken from the ICI 20-F filed Mar 31, 2006. a) Employee benefits Under UK GAAP, the Group measured pension commitments and other related benefits in accordance with SSAP 24 Accounting for Pension Costs. Additional disclosures were given in accordance with FRS 17 Retirement Benefits. Under IFRS, the Group measures pension commitments and other related benefits in accordance with IAS 19 Employee Benefits. IAS 19 is similar to FRS 17 in that it adopts a balance sheet approach, bringing the deficit/surplus of the pension/other post-retirement benefit schemes onto the balance sheet. However, FRS 17 requires all actuarial gains and losses to be recognised directly in reserves, whereas IAS 19 also includes an alternative option allowing actuarial gains and losses to be held on the balance sheet and released to the income statement over a period of time. ICI has elected not to adopt this alternative option and therefore is accounting for post-retirement benefits in a manner consistent with FRS 17. Rather than showing solely an operating charge in the income statement, as was the case under SSAP 24, under IAS 19 a net financing expense is also recognised. The net finance expense relates to the unwinding of the discount applied to the liabilities of the post-retirement benefit schemes offset by the expected return on the assets of the schemes. Under UK GAAP, the liability/asset on the balance sheet represented the timing differences between the SSAP 24 charge and the payments made to the pension and post-retirement healthcare schemes. Under IFRS, the liability/asset on the balance sheet represents the deficit/surplus on pension and post-retirement healthcare schemes. This balance encompasses all assets/liabilities arising from defined benefit schemes. This excerpt taken from the ICI 6-K filed Mar 14, 2006. a) Employee benefits Under UK GAAP, the Group measured pension commitments and other related benefits in accordance with SSAP 24 Accounting for Pension Costs. Additional disclosures were given in accordance with FRS 17 Retirement Benefits. Under IFRS, the Group measures pension commitments and other related benefits in accordance with IAS 19 Employee Benefits. IAS 19 is similar to FRS 17 in that it adopts a balance sheet approach, bringing the deficit/surplus of the pension/other post-retirement benefit schemes onto the balance sheet. However, FRS 17 requires all actuarial gains and losses to be recognised directly in reserves, whereas IAS 19 also includes an alternative option allowing actuarial gains and losses to be held on the balance sheet and released to the income statement over a period of time. ICI has elected not to adopt this alternative option and therefore is accounting for post-retirement benefits in a manner consistent with FRS 17. Rather than showing solely an operating charge in the income statement, as was the case under SSAP 24, under IAS 19 a net financing expense is also recognised. The net finance expense relates to the unwinding of the discount applied to the liabilities of the post-retirement benefit schemes offset by the expected return on the assets of the schemes. Under UK GAAP, the liability/asset on the balance sheet represented the timing differences between the SSAP 24 charge and the payments made to the pension and post-retirement healthcare schemes. Under IFRS, the liability/asset on the balance sheet represents the deficit/surplus on pension and post-retirement healthcare schemes. This balance encompasses all assets/liabilities arising from defined benefit schemes. | EXCERPTS ON THIS PAGE:
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