BT 2014 Annual Report Download - page 73

70 The Strategic Report
Group performance
Accounting position under IAS 19 (Revised 2011)
The accounting decit, net of tax, has increased in the year from £4.5bn
to £5.6bn. The movements in the decit are shown below.
Movements on IAS 19 deƬcit
Income statement
Actuarial
movements
Cash
contributions
Actuarial losses on liabilities
due to experience
Actuarial losses on assets and
exchange rate movements
Decit at 31 March 2014
Decit at 1 April 2013
Service cost
Net interest
Administration costs
Settlements
Regular contributions
Decit contributions
Actuarial gains on liabilities
due to assumptions
3,000
4,000
5,000
7,000
6,000
8,000
£m
Decit, net of tax Deferred tax asset
272
235
40
2
228
325
580
306
4,543
5,641 1,381
1,444
1,313
Actuarial losses on plan assets for 2013/14 reect actual investment
returns over the year of 0.6% which were below the IAS 19 (Revised
2011) discount rate of 4.2%. This was due to low or negative returns
on a number of asset classes (such as index linked gilts), partially oset
by higher returns from UK equities and property. This performance
follows a record high for the BTPS plan assets of £41.3bn at 31 March
2013 which was driven by strong investment returns over 2012/13 of
around12%.
The increase in the real discount rate relative to RPI, from 0.87% to
0.97%, led to a fall in the liabilities which is shown as an actuarial gain
on liabilities due to assumptions.
Allowing for scheme and membership experience over the year, such as
updated membership data, led to an increase in the liabilities, shown as
an actuarial loss on liabilities due to experience.
We have adopted IAS 19 (Revised 2011) this year, the revised pensions
accounting standard issued by the International Accounting Standards
Board. Details of this and its impact are set out in note 1 on page 127
ofthe consolidated nancial statements.
Contractual obligations and commitments
A summary of our principal contractual nancial obligations and
commitments at 31 March 2014 is shown below. We have provided
further details on these items in notes 19, 24 and 29 to the consolidated
nancial statements note 29 includes details relating to our nancial
commitments and contingent liabilities.
Payments due by period
Total
£m
Less
than
1year
£m
Between
1 and
3years
£m
Between
3 and
5years
£m
More
than
5years
£m
Loans and other
borrowingsa 9,489 1,859b 2,618 1,639 3,373
Finance lease obligations 264 14 26 25 199
Operating lease obligations 6,838 396 765 728 4,949
Capital commitments 400 378 15 6 1
Programme rights
commitments 1,657 211 979 467 
Pension decit obligations 2,065 295 590 590 590
Total 20,713 3,153 4,993 3,455 9,112
a Excludes fair value adjustments for hedged risks.
b Includes £232m of accrued interest due within less than one year.
At 31 March 2014 our cash, cash equivalents and current asset
investments were £2,469m. We also have unused committed borrowing
facilities of £1.5bn. These resources and our future cash generation are
expected to allow us to settle our obligations as they fall due.