Carphone Warehouse 2015 Annual Report Download - page 124

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Dixons Carphone plc Annual Report and Accounts 2014/15
Financial statements
Notes to the Group financial statements
122
20 Retirement and other post-employment benefit obligations continued
The investment strategy of the scheme is determined by the independent Trustee through advice provided by an independent
investment consultant. The scheme invests in a diverse range of asset classes as set out above with matching assets primarily
comprising holdings in inflation linked gilts and corporate bonds.
Actual return on the scheme assets was a gain of £111 million (2013/14: £nil).
v) Sensitivities
The value of the UK defined benefit pension scheme assets are sensitive to market conditions, particularly equity values which
comprise approximately 67% of the scheme’s assets. Changes in assumptions used for determining retirement benefit costs
and liabilities may have a material impact on the 2015/16 income statement and the balance sheet. The main assumptions are
the discount rate, the rate of inflation and the assumed mortality rate. The following table provides an estimate of the potential
impacts of each of these variables if applied to the current year consolidated income statement and balance sheet.
Net finance costs Net de
f
icit
13 months
ended
2 May
2015
£million
Year
ended
29 March
2014
£million
2 May
2015
£million
29 March
2014
£million
Positive / (negative) effect
Discount rate: 0.25% increase 2 — 73 —
Inflation rate: 0.25% increase† (2) — (57) —
Mortality rate: 1 year increase (2) — (42) —
† The increase in scheme benefits provided to members on retirement is subject to an inflation cap.
d) Other post-employment benefits – IAS 19
The Group offers other post-employment benefits to employees in overseas territories, in particular in Greece. These benefits are
unfunded. At 2 May 2015 the net obligation in relation to these benefits was £3 million (2014: £nil). The net movement in the
obligation (since the Merger) is not significant.