Suzuki 2004 Annual Report Download - page 38

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SUZUKI MOTOR CORPORATION
7. Accrued retirement & severance benefits
(a) Outline of an adopted retirement benefit system
In the case of the Company, as a defined benefit plan, Employee Pension Fund, Approved
Retirement Annuity System and Termination Allowance Plan are established.
(b) Items related to a retirement benefit obligation
Remarks:1). The premium retirement allowance paid on a temporary basis is not included.
2).
Some of subsidiaries adopt simplified methods for the calculation of retirement benefits.
3). Associated with the substitute component, adopted the transitional treatment
provided in Articles 47-2 of the "Practical Guidelines on Accounting for
Postretirement Benefits (Interim Report)" ( The 13th report prepared by the
Accounting System Committee of the Japan Institute of Certified Public
Accountants), and regarded the liabilities (projected benefit obligation or PBO) and
the pension assets corresponding to the expected returning amount of the
substitute component as disappearing from the Company's balance sheet. The
expected returning amount appropriated as of March 31, 2004 was 57,410 million
yen.
(c) Items related to retirement benefit cost
Remarks:1)
The amount of employees' contribution to Employees' Pension Fund is deducted.
2)
The retirement benefit cost of subsidiaries where simplified methods are adopted is
accounted for “a. Service cost”.
2004 2003 2004
a. Retirement benefit obligation ¥(114,489) ¥(136,959) $(1,083,262)
b. Pension assets 52,834 58,810 499,903
c.
Unrecognized retirement benefit obligation (a + b)
¥ (61,655) ¥ (78,149) $ (583,359)
d. Unrecognized transition liability ———
e.
Unrecognized difference by an actuarial calculation
16,739 23,846 158,380
f.
Unrecognized prior service cost(decrease of liabilities)
(10,458) (63) (98,954)
g.
Accrued retirement & severance benefits (c+d+e+f)
¥ (55,374) ¥ (54,365) $ (523,932)
Millions of
yen
Thousands of
U.S. dollars
2004 2003 2004
a. Service cost ¥ 6,077 ¥ 7,184 $ 57,505
b. Interest cost 2,033 2,123 19,236
c. Assumed return on investment (722) (1,644) (6,832)
d. Amortized amount of transition liability —12,908 —
e. Amortized amount of actuarial difference 1,858 7,945 17,584
f. Amortized amount of prior service cost (313) (4) (2,963)
g. Retirement benefit cost (a+b+c+d+e+f) ¥ 8,934 ¥28,513 $ 84,531
h. Profit from the return of the substitute
components of Employees Pension Fund assets
—(24,101) —
i. Loss from the withdrawal from Employees
Pension Funds of some subsidiaries
1,684 —15,939
j. Total(g+h+i) ¥10,618 ¥ 4,412 $ 100,470
Thousands of
U.S. dollars
Millions of
yen
38
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS