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HYUNDAI MOTOR COMPANY Annual Report 2014
FINANCIAL STATEMENTS / 151150
(3) The amounts recognized in the consolidated statements of financial position related to defined benefit plans as of December
31, 2014 and 2013, consist of the following:
In millions of Korean Won
Description December 31, 2014 December 31, 2013
Present value of defined benefit obligations ￦ 4,065,742 ￦ 3,131,966
Fair value of plan assets (3,471,803) (2,749,943)
￦ 593,939 ￦ 382,023
Net defined benefit liabilities 594,058 389,306
Net defined benefit assets (119) (7,283)
(4) Changes in net defined benefit assets and liabilities for the year ended December 31, 2014, are as follows:
In millions of Korean Won
Description
Present value of defined
benefit obligations
Fair value of
plan assets
Net defined
benefit liabilities
Beginning of the year ￦ 3,131,966 ￦ (2,749,943) ￦ 382,023
Current service cost 452,968 -452,968
Interest expenses (income) 136,845 (119,797) 17,048
3,721,779 (2,869,740) 852,039
Remeasurements:
Return on plan assets - 28,274 28,274
Actuarial gains arising from changes in demographic assumptions 25,672 -25,672
Actuarial gains arising from changes in financial assumptions 389,867 -389,867
Actuarial gains arising from experience adjustments 62,158 -62,158
477,697 28,274 505,971
Contributions - (724,424) (724,424)
Benefits paid (153,751) 101,627 (52,124)
Transfers in (out) 514 106 620
Effect of foreign exchange differences and others 19,503 (7,646) 11,857
End of the year ￦ 4,065,742 ￦ (3,471,803) ￦ 593,939
Changes in net defined benefit assets and liabilities for the year ended December 31, 2013, were as follows:
In millions of Korean Won
Description
Present value of defined
benefit obligations
Fair value of
plan assets
Net defined
benefit liabilities
Beginning of the year ￦ 2,975,771 ￦ (2,154,022) ￦ 821,749
Current service cost 473,463 -473,463
Past service cost 21,337 -21,337
Interest expenses (income) 115,713 (82,893) 32,820
3,586,284 (2,236,915) 1,349,369
Remeasurements:
Return on plan assets - (7,684) (7,684)
Actuarial gains arising from changes in demographic assumptions (85,942) -(85,942)
Actuarial gains arising from changes in financial assumptions (230,175) -(230,175)
Actuarial gains arising from experience adjustments (22,660) -(22,660)
(338,777) (7,684) (346,461)
Contributions - (590,241) (590,241)
Benefits paid (120,090) 80,259 (39,831)
Transfers in (out) 1,105 1,080 2,185
Effect of foreign exchange differences and others 3,444 3,558 7,002
End of the year ￦ 3,131,966 ￦ (2,749,943) ￦ 382,023
(5) The sensitivity analyses below have been determined based on reasonably possible changes of the significant assumptions as
of December 31, 2014 and 2013, while holding all other assumptions constant.
In millions of Korean Won
Effect on the net defined benefit liabilities
December 31, 2014 December 31, 2013
Description Increase by 1% Decrease by 1% Increase by 1% Decrease by 1%
Discount rate (431,595) 524,793 (326,031) 385,624
Rate of expected future salary increase 501,421 (423,593) 313,430 (275,984)
(6) The fair value of the plan assets as of December 31, 2014 and 2013, consists of the following:
In millions of Korean Won
Description December 31, 2014 December 31, 2013
Insurance instruments ￦ 3,230,405 ￦ 2,415,575
Debt instruments 102,734 66,149
Others 138,664 268,219
￦ 3,471,803 ￦ 2,749,943
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013