IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

Chapter 19/ Accounting and Reporting by Retirement Benefit Plans (lAS 26)

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quire that the date of the actuarial valuation used should be disclosed. Actuarial present values of promised benefits should be based either on current or projected salary levels; whichever basis is used should also be disclosed. Furthermore, the effect of any changes in actuarial assumptions that had a materia l impact on the actuarial present value of promised retirement benefi ts should also be disclosed. The report should exp lain the relationship between actuarial present values of promised benefits , the net assets available for benefits, and the policy for funding the promised benefits. 5.5 As in the case of defined contribution plans, investments of a defined benefit plan should be carried at fair value, which for marketable securit ies would be "market values ." Example Examples of the alternative types of reports prescribed fo r a defin ed benefit plan fo llow. Excellent Inc, Defin ed Benefit Plan STATEMENT OF NET ASSETS AVAILA BLE FOR BENEFITS, ACTUARIAL PRESENT VALUE OF ACCUMULATED RETIREMENT BENEFITS AND PLAN EXCESS OR DEFICIT December 3 1,2006 (ill thousands of u.s. $) 1. Statement of net assets available for benefits Assets Investments at f air value: U.S. government securities

155,000 35,000 35,000 35,000 25,000 25,000 15 000 325 000 155,000 55.000 25 000 235 000 55 000 6 15 000 150,000 150 000 300 000 120 000 420 000 ill.QQQ

U.S. municipal bonds U.S. equity securities EU equity securities U.S. debt securities EU corporate bonds Others

Total investments Receivables:

Amounts due from stockbrokers on sale of securities Accrued interest Dividends receivable Total receivables Cash: Total assets Liab ilities Accoullts payable : Amounts due to stockbrokers on purchase of securities Benefits payable to participants-due and unpaid Total accounts payable Accrued expenses : Total liabilities Net assets available for benefits

2. Actuarial present value of accumulated plan benefits Vested benefits Nonvested benefits Total 3. Excess of net assets available for benefits over actuarial present value of accumulated plan benefits

120,000 30 000 l.5ll.QQQ

Excellen t In c, Defined Benefit Plan STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Decemb er 31, 2006 (ill thousands of u.s. $) Investment income: Interest income Dividend income Net appreciation (unrealized gain) in fair value of investments 45,000 15,000

Total investment income