Qantas 2010 Annual Report Download - page 87

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85 ANNUAL REPORT 2010
for the year ended 30 June 2010
Notes to the Financial Statements continued
The Qantas Superannuation Plan (QSP) is a hybrid de ned bene t/de ned contribution fund with 14 separate divisions which commenced operation
in June 1939. In addition to the QSP, there are a number of small offshore de ned bene t plans.
The Qantas Group makes contributions to de ned bene t superannuation plans that provide de ned bene t amounts for employees upon
retirement. Under the plans, employees are entitled to retirement bene ts determined, at least in part, by reference to a formula based on years of
membership and salary levels. The total plan assets include shares in Qantas with a fair value of $8 million (2009: $6 million). Plan assets also include
an investment in a trust which owns a 50 per cent interest in property occupied by the Qantas Group. The value of this investment is $16 million
(2009: $28 million).
Qantas Group
2010
$M
2009
$M
CHANGES IN THE PRESENT VALUE OF DEFINED BENEFIT OBLIGATION
Opening de ned bene t obligation 2,098 1,846
Current service cost 158 149
Interest cost 106 105
Actuarial losses 174 176
Exchange differences on foreign plans (23) 8
Bene ts paid (303) (186)
Closing de ned bene t obligation 2,210 2,098
CHANGES IN THE FAIR VALUE OF PLAN ASSETS
Opening fair value of plan assets 1,944 2,142
Expected return 147 170
Actuarial gains/(losses) 36 (343)
Exchange differences on foreign plans (16) 6
Contributions by employer 133 130
Contributions by plan participants 23 25
Bene ts paid (303) (186)
Closing fair value of plan assets 1,964 1,944
EXPENSE RECOGNISED IN THE CONSOLIDATED INCOME STATEMENT
Service cost 140 135
Interest cost 106 105
Contributions by plan participants (23) (25)
Expected return on plan assets (147) (170)
Actuarial losses 15 –
Increase in allowance for contributions tax on net liability 13 7
Expenses 57
Total included in manpower and staff related expenditure 109 59
ACTUAL RETURN GAIN/(LOSS) ON PLAN ASSETS
Actual return gain/(loss) on plan assets 183 (173)
%%
MAJOR CATEGORIES OF PLAN ASSETS AS A PERCENTAGE OF TOTAL PLAN ASSETS
Equity instruments (Australian and overseas) 55 55
Fixed interest, cash and indexed bonds (Australian and overseas) 20 20
Property 910
Alternative assets 16 15
$M $M
RECONCILIATION TO THE CONSOLIDATED BALANCE SHEET
Fair value of plan assets 1,964 1,944
Present value of de ned bene t obligation 2,210 2,098
De cit (246) (154)
Less: unrecognised actuarial losses (494) (380)
Recognised prepayments in the Consolidated Balance Sheet (refer Note 14) 248 226
30. Superannuation