Download the Annual report 2011 - Unisa

UNISA ANNUAL REPORT 2011
ment date. Termination benefits for voluntary redundancies are recognised if the University has made an offer
encouraging voluntary redundancy, if it is probable that the offer will be accepted, and the number of acceptances
can be estimated reliably.
2.22.4 Defined contributions plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions
into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for
contributions to defined contribution retirement plans are recognised as an employee benefit expense in profit
or loss when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or
a reduction in future payments is available.
2.22.5 Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
The University’s net obligation in respect of defined benefit retirement plans is calculated separately for each
plan by estimating the amount of future benefits that employees have earned in return for their service in the
current and prior periods. That benefit is discounted to determine its present value. The fair value of any plan
assets and any unrecognised past service costs is deducted. The discount rate is the market yield at the reporting
date on government bonds that have maturity dates approximating to the terms of the University’s obligations.
The calculation is performed by a qualified actuary using the projected unit credit method.
When the benefits of a plan are improved, the portion of the increased benefit relating to past service by
employees is recognised as an expense in profit or loss on a straight-line basis over the average period until
the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised immediately
in profit or loss.
When the calculation results in a benefit to the University, the recognised asset is limited to the net total of
any unrecognised past service costs and the present value of any future refunds from the plan or reductions in
future contributions to the plan.
The University recognises all actuarial gains and losses arising from defined benefit plans immediately in profit
or loss.
2.23 BASIS OF APPORTIONMENT BETWEEN FUNDS
2.23.1 Short-term assets and liabilities
Short-term assets and liabilities are accounted for in the various fund groups in which the related additions and
deductions are reflected.
2.23.2 Investment income
The allocation of investment income and realised profits or losses on pooled investments is based on the effective
monthly balances. Funds in the fund group restricted use and funds of institutes and centres which are not
in terms of University policy invested in listed bonds and equities do not share in the investment income and
the realised profits or losses of these investments.
2.24 OTHER
2.24.1 Transfers
Transfers are made to reserves in respect of property, plant and equipment to make provision for current and
future fixed asset renovations, upgrading, acquisitions and maintenance.
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