Vtech 2014 Annual Report Download - page 60

58 VTech Holdings Limited Annual Report 2014
Notes to the Financial Statements
(v) Scheme assets consist of the following:
2014
US$ million
2013
US$ million
Equity securities:
– Financial institutions 5.3 5.6
– Non-financial institutions 12.6 11.7
17.9 17.3
Bonds:
– Government 3.9 3.0
– Non-government 3.9 3.7
7.8 6.7
Cash and others 1.1 0.3
26.8 24.3
(vi) The significant actuarial assumptions used as at 31 March
2014 (expressed as weighted average) and sensitivity analysis
are as follows:
2014 2013
Discount rate 2.3% 1.3%
Future salary increases 5.0% 5.0%
The below analysis shows how the defined benefit obligation as
at 31 March 2014 would have increased/(decreased) as a result of
0.25% change in the significant actuarial assumptions:
Increase
in 0.25%
US$ million
Decrease
in 0.25%
US$ million
Discount rate (0.6) 0.6
Future salary increases 0.6 (0.6)
The above sensitivity analysis is based on the assumption that
changes in actuarial assumptions are not correlated and therefore
it does not take into account the correlations between the
actuarial assumptions.
15 Pension Schemes (Continued)
(b) Defined benefit scheme (Continued)
(iv) The amounts recognised in the consolidated income
statement and other comprehensive income are as follows:
Note
2014
US$ million
2013
US$ million
Current service cost 1.8 2.0
Net interest cost on net
defined benefit liability 0.1 0.1
Administrative expenses paid
from Scheme assets 0.1 0.1
Amounts recognised in
the consolidated income
statement 22.0 2.2
Actuarial gains (3.3) (1.2)
Return on Scheme assets
excluding interest income (1.9) (1.3)
Amounts recognised in
other comprehensive
income (5.2) (2.5)
Total defined benefit credit (3.2) (0.3)
16 Share Capital, Share Options and Share Purchase Scheme
(a) Share Capital
2014 2013
US$ million US$ million
Authorised
Ordinary shares: 400,000,000 (2013: 400,000,000) of US$0.05 each 20.0 20.0
2014 2013
No. of shares US$ million No. of shares US$ million
Issued and fully paid
Ordinary shares of US$0.05 each:
At 1 April 250,378,133 12.5 249,489,133 12.5
Shares issued upon exercise of share options 494,000 – 889,000 –
At 31 March 250,872,133 12.5 250,378,133 12.5
Note: Subsequent to the balance sheet date and up to the date of this Annual Report, the issued and fully paid share capital of the Company was increased to
251,182,133 ordinary shares upon the exercise of 310,000 share options.
The Company’s issued and fully paid shares as at 31 March 2014
include 39,000 shares (2013: 82,800 shares) held in trust by the
trustee under the Share Purchase Scheme and 12,400 shares
(2013: Nil) held in trust by the trustee under the French Subplan
which were granted to the eligible French employees and remain
unvested, details of which are set out in note 16(c).
(b) Share Options
At the annual general meeting of the Company held on 22 July
2011, the shareholders of the Company approved the adoption
of the 2011 Scheme and the cancellation of the 2001 Scheme
which originally would have expired on 9 August 2011, upon
which no further options will be offered but in all other respects
the provisions of the 2001 Scheme shall remain in force and the
options granted prior to the cancellation of the 2001 Scheme
shall continue to be valid and exercisable in accordance with the
2001 Scheme.
Pursuant to the 2011 Scheme, the Directors are authorised, at
any time during the 10 years from the date of adoption of the
2011 Scheme, to grant options to employees and officers of any
member of the Group to subscribe for shares of the Company at
prices to be determined by the Directors in accordance with the
requirements of the Listing Rules. The basis of determination of the
exercise price shall be the higher of the closing price of the shares
of the Company as stated in the Stock Exchange’s daily quotations
sheet on the date of grant, which must be a business day; and the
average closing price of the shares of the Company as stated in
the Stock Exchange’s daily quotations sheets for five business days
immediately preceding the date of grant.