198 / 488
Chapter
19/
Accounting and Reporting by Retirement Benefit Plans (lAS 26)
189
155,000
35,000
35,000
35,000
25,000
25,000
15 000
325 000
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
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
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
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
Total investment income
45,000
15,000