Telstra 2007 Annual Report Download - page 202

Telstra Corporation Limited and controlled entities
199
Notes to the Financial Statements (continued)
(h) Net financial position of plan
The financial position of the defined benefit divisions of Telstra Super
(including defined benefit members’ total voluntary account
balances) and the HK CSL Retirement Scheme is shown as follows:
(i) In accordance with AAS 25: “ Financial Reporting by
Superannuat ion Plans” the net surplus is determined as the difference
between the present value of the accrued benefit s and the net market
value of plan assets.
(ii) Amounts for Telstra Super have been taken from the audited
financial report of the scheme as at 30 June 2007 and 30 June 2006.
The scheme assets are stated at net market values.
(iii) Amounts for the defined benefit divisions of the HK CSL Retirement
Scheme have been taken from the actuarial valuation of the scheme
as at 30 June 2007 and 30 June 2006. The scheme assets are stated at
net market values.
The estimated period over which the benefits of the members will be
returned is 12.6 years for Telstra Super (2006: 11 years) and 14.5 years
for the HK CSL Retirement Scheme (2006: 14.5 years).
The net surplus under AAS 25 of $1,340 million (30 June 2006: $1,390
million) differs from the net defined benefit asset of $814 million (30
June 2006: $1,029 million) recognised in the balance sheet due to
different measurement rules in the relevant accounting standards
AAS 25 and AASB 119: “ Employee Benefits” . Both standards require
present value discounting of future benefits, however AAS 25 requires
the use of a discount rate equal to an expected asset return whereas
AASB 119 requires an after-tax bond yield.
28. Post employment benefits (continued)
Net scheme assets Accrued benefits Net surplus (i) Vested benefits
As at 30 June As at 30 June As at 30 June As at 30 June
2007 2006 2007 2006 2007 2006 2007 2006
$m $m $m $m $m $m $m $m
Telstra Super (ii) . . . . . . . . . . . . . . 4,211 4,449 2,904 3,079 1,307 1,370 3,610 3,853
HK CSL Retirement Scheme (iii) . . . . . 98 94 65 74 33 20 66 68
4,309 4,543 2,969 3,153 1,340 1,390 3,676 3,921