Page 94 - Neal and Massy Holdings Annual Report 2012

92 2012
NOTES TO THE Consolidated FINANCIAL STATEMENTS
September 30, 2012
Expressed in Thousands of Trinidad and Tobago dollars
2 Summary Of Significant Accounting Policies (continued)
2.19 Employee benefits (continued)
a) Pension obligations (continued)
For defined contribution plans, the Group pays contributions to publicly or privately administered pension insurance plans
on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions
have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions
are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
b) Other post-employment obligations
Certain Group companies provide post-retirement healthcare benefits to their retirees. The entitlement to these benefits is
usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service
period. The expected costs of these benefits are accrued over the period of employment using the same accounting
methodology as used for defined benefit pension plans. Actuarial gains and losses arising from experience adjustments,
and changes in actuarial assumptions are charged or credited to equity in OCI in the period in which it arises. These
obligations are valued annually by independent qualified actuaries.
c) Termination benefits
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or
whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination
benefits when it is demonstrably committed to a termination when the entity has a detailed formal plan to terminate the
employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary
redundancy, the termination benefits are measured based on the number of employees expected to accept the offer.
Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.
d) Bonus plans
A liability for employee benefits in the form of bonus plans is recognised in other provisions when there is no realistic
alternative but to settle the liability and at least one of the following conditions are met:
i) there is a formal plan and the amounts to be paid are determined before the time of issuing the financial statements;
or
ii) past practice has created a valid expectation by employees that they will receive a bonus/profit sharing and the amount
can be determined before the time of issuing the financial statements.
Liabilities for bonus plans are expected to be settled within 12 months and are measured at the amounts expected to be
paid when they are settled.