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Wiley IFRS: Practical Implementation Guide and Workbook
Benevolent Corp. Defined Contribution Plan
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31,2006
(in thousands of U.S.
$)
Assets
Investments at fa ir value:
U.S. government securities
U.S. munici pal bonds
U.S. equity securitie s
EU equity securities
U.S. debt securities
EU corporate bond s
Others
Total investments
Receivables:
Amount s due from stockbrokers on sale of securities
Accrued interest
Dividends receivable
Total receivable s
Cash:
Total assets
Liabilities
Accounts payable
Amount s 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 benefit s
$ 10,000
13,000
13,000
13,000
12,000
12,000
11,000
84 000
25,000
15,000
12 000
52 000
15 000
lSI 000
20,000
21000
41000
21 000
62 000
£2.QQQ
5. DEFINED BENEFIT PLANS
5.1 Defined benefit plans are those plans where the benefits are guaranteed amounts and amounts
to be paid as retirement benefits are determined by reference to a formula , usually based on em–
ployees' earnings and/or number of years of service. The critical factors are thus the retirement
benefits that are fixed or determinable, without regard to the adequacy of assets that may have been
set aside for payment of the benefits. This clearly is different from the way defined contribution
plans work; they provide the employees, upon retirement, amounts that have been set aside, plus or
minus investment earnings or losses that have been accumulated thereon, however great or small
that amount may be.
5.2 lAS 26 requires that the report of a defined benefit plan should contain
either
(l)
A statement that shows
a] The net assets available for benefits;
b] The actuarial present value of promised retirement benefits , distinguishing between
vested and nonvested benefits ; and
c] The resulting excess or deficit ;
or
(2) A statement of net assets available for benefits including
either
a] A note disclosing the actuarial present value of promised retirement benefits , dis–
tinguishing between vested and nonvested benefits; or
b] A reference to this information in an accompanying actuarial report.
5.3 lAS 26 recommends, but does not mandate, that in each of the three formats described above,
a report of the trustees in the nature of a management or directors' report and an investment report
may also accompany the statements.
5.4 The Standard does not make it incumbent upon the plan to use annual actuarial valuations.
If
an actuarial valuation has not been prepared on the date of the report, the most recent valuation
should be used as the basis for preparing the financial statement. The Standard does, however, re-