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VTech Holdings Ltd Annual Report 2010 55
17 Pension Schemes (Continued)
For the defined benefit scheme, the amounts recognised in the consolidated balance sheet are as follows:
2010 2009
US$ million US$ million
Movement in present
value of funded defined
benefit obligations:
At 1 April 24.2 21.3
Interest cost 0.5 0.6
Current service cost 1.9 1.8
Actual benefits paid (0.4) (1.2)
Actuarial (gains)/losses (3.8) 1.7
At 31 March 22.4 24.2
2010 2009 2008 2007
US$ million US$ million US$ million US$ million
Historical information
Present value of
the defined
benefit obligations 22.4 24.2 21.3 16.3
Fair value of
Scheme assets (20.0) (13.7) (18.7) (17.2)
Deficit/(surplus)
in the plan 2.4 10.5 2.6 (0.9)
Experience gains
on Scheme
liabilities (1.0) (0.6) (0.1) –
Experience (gains)/
losses on
Scheme assets (4.4) 6.4 0.2 (1.4)
2010 2009
Scheme assets consist
of the following:
Equities 65.4% 65.0%
Bonds 21.6% 29.0%
Cash and others 13.0% 6.0%
100.0% 100.0%
The principal actuarial
assumptions used as at
31 March 2010 (expressed as
weighted average)
are as follows:
Discount rate 3.0% 2.0%
Expected rate of return
on plan assets 7.0% 7.0%
Future salary increases 5.0% 5.0%
2010 2009
Note US$ million US$ million
Fair value of Scheme assets 20.0 13.7
Present value of funded
defined benefit obligations (22.4) (24.2)
Unrecognised actuarial losses 4.1 13.0
Assets recognised
in the consolidated
balance sheet 12 1.7 2.5
The amounts recognised in
the consolidated income
statement are as follows:
Current service cost 1.9 1.8
Interest cost 0.5 0.6
Expected return on plan assets (1.0) (1.3)
Net actuarial losses
recognised in the year 0.7 0.2
Expenses recognised
in the consolidated
income statement 2 2.1 1.3
The actual return on plan
assets was as follows:
Expected return on plan assets 1.0 1.3
Actuarial gains/(losses)
on plan assets 4.4 (6.4)
Actual return on plan assets 5.4 (5.1)
Movement in the assets
recognised in the
consolidated balance sheet:
At 1 April 2.5 2.5
Expenses recognised
in the consolidated
income statement (2.1) (1.3)
Contributions paid 1.2 1.3
Insurance proceeds 0.1 –
At 31 March 1.7 2.5
Movement in fair value
of Scheme assets:
At 1 April 13.7 18.7
Expected return on plan assets 1.0 1.3
Actual Group’s contributions 1.2 1.3
Actual benefit paid (0.4) (1.2)
Actuarial gains/(losses)
on plan assets 4.4 (6.4)
Insurance proceeds 0.1 –
At 31 March 20.0 13.7