BT 2005 Annual Report Download - page 119

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vi Current asset investments continued
Available for sale investments at 31 March 2005 and 2004 consisted of the following:
Amortised
cost
£m
Estimated
fair value
£m
Commercial paper, medium-term notes and other investments at 31 March 2005 1,149 1,149
Commercial paper, medium-term notes and other investments at 31 March 2004 214 214
The contractual maturities of the available for sale investments at 31 March 2005 were as follows:
Amortised
cost
£m
Estimated
fair value
£m
Maturing on or before 31 March 2006 1,149 1,149
Maturing after 1 year through 5 years ––
Total at 31 March 2005 1,149 1,149
vii Pension costs
The following position for the main pension scheme is computed in accordance with US GAAP pension accounting rules
under SFAS No. 87 and SFAS No. 88, the effect of which is shown in the above reconciliation statements.
The pension cost determined under SFAS No. 87 was calculated by reference to an expected long-term rate of
return on scheme assets of 7.27% (2004 – 7.35%, 2003 – 6.90%). The components of the pension cost for the main
pension scheme comprised:
2005
£m
2004
£m
2003
£m
Service cost 507 388 453
Interest cost 1,745 1,657 1,707
Expected return on scheme assets (1,897) (1,646) (1,813)
Amortisation of prior service costs 24 24 24
Amortisation of net obligation at date of limited application of SFAS No. 87 –252
Amortisation of loss (gain) 263 378 (22)
Additional cost of termination benefits –160
Pension cost for the year under US GAAP 642 804 461
The information required to be disclosed in accordance with SFAS No. 132(R) concerning the funded status of the main
scheme at 31 March 2004 and 31 March 2005, based on the valuations at 1 January 2004 and 1 January 2005,
respectively, is given below.
Minimum liability, intangible asset and other comprehensive income
2005
£m
2004
£m
Plan assets at fair value 29,169 26,675
Accumulated benefit obligation 33,160 31,137
Minimum liability 3,991 4,462
Net amount recognised at end of year (2,535) (2,275)
Minimum additional liability 1,456 2,187
Intangible asset as at 31 March 2004:
Unrecognised prior service cost (55) (79)
Accumulated other comprehensive income 1,401 2,108
Changes in benefit obligation 2005
£m
2004
£m
Benefit obligation at the beginning of the year 32,448 30,277
Service cost 507 388
Interest cost 1,745 1,657
Employees’ contributions 50 148
Additional cost of termination benefits –1
Actuarial movement 943 1,428
Other changes 75
Benefits paid or payable (1,364) (1,456)
Benefit obligation at the end of the year 34,336 32,448
118 BT Group plc Annual Report and Form 20-F 2005 United States Generally Accepted Accounting Principles