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VTech Holdings Limited Annual Report 2015
Notes to the Financial Statements
62
15 Pension Schemes (Continued)
(b) Defined benefit scheme (Continued)
(iii) Movement in present value of defined benefit obligations:
2015
US$ million
2014
US$ million
At 1 April 28.8 30.8
Actuarial gains arising from changes
in liability experience (0.2) (0.5)
Actuarial losses/(gains) arising from
changes in financial assumptions 2.1 (2.8)
Interest cost 0.6 0.4
Current service cost 1.6 1.8
Actual benefits paid (1.1) (0.9)
At 31 March 31.8 28.8
The weighted average duration of the defined benefit obligations
is 8.9 years (2014: 9.2 years).
(iv) The amounts recognised in the consolidated income
statement and other comprehensive income are as follows:
Note
2015
US$ million
2014
US$ million
Current service cost 1.6 1.8
Net interest cost on net
defined benefit liability –0.1
Administrative expenses paid
from Scheme assets 0.1 0.1
Amounts recognised in
the consolidated income
statement 21.7 2.0
Actuarial losses/(gains) 1.9 (3.3)
Return on Scheme assets
excluding interest income (1.2) (1.9)
Amounts recognised in
other comprehensive
income 0.7 (5.2)
Total defined benefit costs/
(credit) 2.4 (3.2)
(v) Scheme assets consist of the following:
2015
US$ million
2014
US$ million
Equity securities:
– Financial institutions 5.6 5.3
– Non-financial institutions 12.5 12.6
18.1 17.9
Bonds:
– Government 4.5 3.9
– Non-government 5.8 3.9
10.3 7.8
Cash and others 0.4 1.1
28.8 26.8
(vi) The significant actuarial assumptions used as at 31 March
2015 (expressed as weighted average) and sensitivity analysis
are as follows:
2015 2014
Discount rate 1.5% 2.3%
Future salary increases 5.0% 5.0%
The below analysis shows how the defined benefit obligation as
at 31 March 2015 would have increased/(decreased) as a result of
0.25% change in the significant actuarial assumptions:
Increase
in 0.25%
US$ million
Decrease
in 0.25%
US$ million
Discount rate (0.7) 0.7
Future salary increases 0.6 (0.6)
The above sensitivity analysis is based on the assumption that
changes in actuarial assumptions are not correlated and therefore
it does not take into account the correlations between the
actuarial assumptions.