BRITISH TOURIST AUTHORITY TRADING AS VISITBRITAIN ...

VisitBritain and VisitEngland
Notes forming part of the financial statements for the year ended 31 st March 2010 (Continued)
Accounting policies (Continued)
Defined contribution scheme
A defined contribution plan is a pension plan under which VB pays fixed contributions into a scheme and has no legal or
constructive obligations to pay further if the fund does not hold sufficient assets to pay all employees the benefits relating to
employee service in the current and prior periods.
Contributions to defined contribution pension schemes are charged to the comprehensive statement of income and expenditure
in the year to which they relate.
Defined benefits scheme
For defined benefit schemes the amounts charged to the operating surplus/deficit are the current service costs and gains and
losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately
in the comprehensive statement of income and expenditure if the benefits have vested. If the benefits have not vested, the
costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown within
finance costs and finance income respectively. Actuarial gains and losses are recognised immediately in the comprehensive
statement of income and expenditure.
Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit
method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency
and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each statement
of financial position date.
Recognition of a surplus in the defined benefit schemes is limited based on the economic gain the company is expected to
benefit from the future by means of a refund or reduction in future contributions to the plan, in accordance with IAS 19.
Contributions are made to the British Tourist Boards’ Staff Pensions and Life Assurance Scheme (see note 28) in accordance
with the advice of independent actuaries and are charged to the comprehensive statement of income and expenditure in the
year to which they relate. Overseas pension schemes are treated similarly.
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