Experian 2009 Annual Report Download - page 88

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86 Experian Annual Report 2009
2. Basis of preparation and signicant accounting policies (continued)
Employee benets
Dened benet pension arrangements – funded plans
The retirement benet assets and obligations recognised in the Group balance sheet in respect of funded plans comprise the
fair value of plan assets of funded plans less the present value of the related dened benet obligation at the balance sheet
date, together with adjustments for past service costs. The dened benet obligation is calculated annually by independent
qualied actuaries using the projected unit credit method.
The present value of the dened benet obligation is determined by discounting the estimated future cash outows using
market yields available at the assessment date on high-quality corporate bonds that are denominated in the currency in which
the benets will be paid, and that have terms to maturity consistent with the estimated average term of the related pension
liability.
Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are recognised
immediately in the Group statement of recognised income and expense.
Past service costs are recognised immediately in the Group income statement, unless the changes to the pension plan are
conditional on the employees remaining in service for a specied period of time (the vesting period). In this case, the past
service costs are amortised on a straight line basis over the vesting period.
The pension cost recognised in the Group income statement comprises the cost of benets accrued plus interest on the
dened benet obligation less the expected return on the plan assets over the year. The operating and nancing costs are
recognised separately in the Group income statement.
Dened benet pension arrangements – unfunded plans
Unfunded pension obligations are determined and accounted for in accordance with the principles used in respect of the
funded arrangements but are disclosed in the Group balance sheet within retirement benet obligations.
Dened contribution pension arrangements
The assets of dened contribution plans are held separately from those of the Group in independently administered funds. The
pension cost recognised in the Group income statement represents the contributions payable by the Group to these funds in
respect of the year.
Post-retirement healthcare obligations
The Group operates plans which provide post-retirement healthcare benets to certain retired employees and their dependent
relatives. The principal plan relates to former employees in the UK and, under this plan, the Group has undertaken to meet the
cost of post-retirement healthcare for all eligible former employees who retired prior to 1 April 1994 and their dependants. The
obligations in respect of these plans are calculated annually by independent qualied actuaries.
The obligations are calculated using an actuarial methodology similar to that for the funded dened benet pension
arrangements but are disclosed in the Group balance sheet within retirement benet obligations.
Actuarial gains and losses arising from experience adjustments, and changes in actuarial assumptions, are recognised in the
Group statement of recognised income and expense.
The pension cost recognised in the Group income statement comprises the cost of benets accrued plus interest on the
dened benet obligation. The operating and nancing costs are recognised separately in the Group income statement.
Minority interests in equity
The minority interests in equity in the Group balance sheet represent the share of net assets of subsidiary undertakings held
outside the Group. The movement in the year comprises the prot attributable to such interests together with any dividends
paid, movements in respect of corporate transactions and related exchange differences.
Where put/call option agreements are in place in respect of shares held by the minority shareholders, the put element of the liability
is measured in accordance with the requirements of IAS 39 ‘Financial Instruments: Recognition and Measurement’ and is stated
at the net present value of the expected future payments. In accordance with the requirements of IAS 32 ‘Financial Instruments:
Disclosure and Presentation’ this liability is shown as a non-current nancial liability in the Group balance sheet. The change in the
net present value of such options in the year is recognised in the Group income statement within nance expense.
Notes to the Group nancial statements continued
Financial statements