Tiscali 2013 Annual Report Download - page 101

Annual financial report as at 31 December 2013
Date
File Name
Status
Page
-
Annual Report as at 31
December 2013
101
at 31 December 2006 (carried out on the basis of the official cost of living index and the legal interest)
and the quotas accrued with companies with less that 50 employees remain as staff severance
indemnities.
Further to IAS 19, for estimating staff severance indemnities, the following methods were used: the
Traditional Unit Credit Method for companies with at least 50 employees, and the Projected Unit Credit
Cost – service pro rate for the other companies, in accordance with the following stages:
on the basis of a series of financial hypotheses (increase in living cost, remuneration, etc.),
the possible future performances which might be disbursed in favour of each employee
registered in the programme in the case of retirement, decease, disability, resignation, etc.
were projected. The estimate of future benefits includes any foreseeable increases relating
to a further length of service, and to the presumable growth of the remuneration received as
of the date of estimation, only for the employees of companies with less than 50
employees;
the current average value of future performances was calculated at the date of estimate, on
the basis of the adopted annual interest rate, and of the probability of each performance to
be really disbursed;
the liability was established for each company concerned, to an extent equating to the
average current value of the future benefits which will be generated by the provision
existing as of the valuation date, without considering any future provision (for companies
with at least 50 employees) or identifying the portion of the current average value of the
future benefits which refer to the service already accrued by the employee as of the value
date (for the other companies).
Financial assumptions
Inflation rate: 2.0%
Discount rate: 3%
Demographic assumptions:
Mortality: ISTAT 2002 mortality tables differentiated by gender
Disability: INPS 1998 disability tables differentiated by gender
Resignation: 3.5% from 20 to 65 years of age
Advance payments: 3.0% from 20 to 65 years of age
Retirement: 65 for men and 60 for women, with maximum length of
service 40 years
As from 1 January 2013 with retrospective efficacy, the Company adopted the new version of the
accounting standard IAS 19 “employee benefits”. The most significant amendment made to the
standard concerns the obligation to state all the actuarial gains/losses within the sphere of the OCIs,
with consequent elimination of the so-called corridor approach.
An in-depth description of the changes introduced by the new standard and their accounting impacts is
provided in the section “Form and content of the accounting statements”.