AFD_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS 6 Notes to the consolidated financial statements

The assumptions used for the valuations are as follows: P discount rate: 2.00%; P annual increase in salary: 2.00%; P retirement age: 63bfor non-executive level employees and 65bfor executive level employees; P actuarial tables: TGH 05 (men)/TGF 05 (women). In accordance with IASb19, these commitments (retirement bonuses and the financing of health insurance plans and pensions) undergo actuarial valuations that factor in demographic and financial assumptions. The amount of provisions for commitments is determined using the Projected Unit Credit Method. At each closing, the retirement commitments carried by AFD are remeasured and compared with the value of the insurance policies.

In compliance with IASb19 (Revised), actuarial gains and losses are recognised in other comprehensive income (OCI). Therefore, equalisation provisions on 31bDecember 2017b: P amount to €1.9M in the income statement and are recognised as staff costs; they represent the sum of the cost of services rendered plus the interest cost for 2017bless benefits paid by the employer over the period; P appear on the balance sheet as items that cannot be recycled to profit or loss and amount to a gain of €7.1M arising from the measurement of commitments as at 31bDecember 2017band are recognised as equity. Other long-term benefits AFD gives its employees bonuses as long-service benefits. An additional provision was recognised on 31bDecember 2017bin the amount of €27K. The aggregate impacts of the post-employment benefits on the 2017band 2016breporting years are set out in the table below:

At 31/12/2017

Impact on income

Impact on equity

At 31/12/2016

Impact on income

Impact on equity

At 01/01/2016

In thousands of euros

Provisions for employee benefits

91,565 90,601

1,972 1,944

-7,109 -7,109

96,702 95,766

4,238 4,166

-1,427 -1,427

93,891 93,027

- Defined benefit plans - Other long-term benefits

964

27

b

936

72

b

864

The sensitivity analysis, based on the actuarial assumptions used to value the defined benefit plans at year-end, is as follows:

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REGISTRATION DOCUMENT 2017

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