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50 Cathay Pacific Airways Limited Annual Report 2002
16. RETIREMENT BENEFITS
(continued)
2002
Net expenses recognised in the Group profit and loss account: HK$M
Current service cost 391
Interest on obligations 318
Expected return on plan assets (330)
To t al included in staff costs (2001: HK$380 million) 379
Actual loss on plan assets 373
The difference between the market value of the schemes’ assets and the present value of the accrued past
services liabilities at the date of an actuarial valuation is taken into consideration when determining future funding
levels in order to ensure that the schemes will be able to meet liabilities as they become due. The contributions
are calculated based upon funding recommendations arising from actuarial valuations.
(b) Defined contribution retirement schemes
Staff employed by the Company in Hong Kong on expatriate terms are eligible to join a defined contribution
retirement scheme, the CPA Provident Fund 1993. All staff employed in Hong Kong are eligible to join the CPA
Provident Fund.
Under the terms of these schemes, other than the Company contribution, staff may elect to contribute from 0%
to 10% of the monthly salary. During the year, the benefits forfeited in accordance with the schemes’ rules
amounted to HK$10 million (2001: HK$15 million) which have been applied towards the contributions payable by
the Company.
A mandatory provident fund (“MPF”) scheme was established under the MPFSO in December 2000. Since the
Company has obtained exemption for its existing retirement schemes, all staff were offered the choice of switching
to the MPF scheme or staying in existing schemes. Where staff elected to join the MPF scheme, both the
Company and staff are required to contribute 5% of the employees’ relevant income (capped at HK$20,000).
Staff may elect to contribute more than the minimum as a voluntary contribution.
Contributions to defined contribution retirement schemes charged to the Group profit and loss account are
HK$298 million (2001: HK$266 million).
17. DEFERRED TAXATION
Group Company
2002 2001 2002 2001
Movements in deferred taxation comprise: HK$M HK$M HK$M HK$M
At 1st January 7,836 7, 1 4 6 7,707 7,026
Movements for the year
-
transfer from profit and loss account
-
tax provision 34 45 33 36
-
operating expenses 147 118 147 118
-
initial cash benefit from lease arrangements
-
759
-
759
Amount due within one year included under
current liabilities
-
taxation (403) (232) (403) (232)
At 31st December 7,614 7,836 7,484 7,707
Notes to the Accounts
-
Balance Sheet