Annual Report 2010 (PDF) - USB Bank

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Notes to the Financial Statements as at 31 December 2010 6. Staff costs 2010 2009 € € Staff salaries and other remuneration 7.857.110 7.383.728 Social insurance and other contributions 929.411 866.529 Retirement benefit costs 1.375.411 1.225.897 10.161.932 9.476.154 The number of persons employed by the Bank as at 31 December 2010 was 195 (2009: 199). Retirement benefits – Defined benefit scheme The Bank operates a defined benefit scheme, which is fully funded. All contributions to the scheme are made on an annual basis with the purpose of creating enough reserves during the working life of the employees to provide for the payment of a lump sum either upon retirement or early death. The annual cost of providing benefits under the scheme is charged to the income statement. The cost of providing benefits is part of staff costs and is estimated annually using the projected unit credit actuarial valuation method by independent actuaries. According to this method, the cost of providing retirement benefits is debited to the income statement over the working life of the employees participating in the scheme according to the guidance and provisions of independent professional actuaries that carry out actuarial valuation of the plan every year. The calculation of the cost of providing benefits for this scheme is based on the present value of the expected future outflow using as discount rate the average interest rate of Government bonds with similar duration as the duration of the liability. According to the actuarial valuation carried out for the year ended 31 December 2010, the amounts presented on the statement of financial position of the Bank in relation to the defined benefit scheme are as follows: 2010 2009 € € Present value of the obligation (10.227.359) (8.927.886) Fair value of plan assets 3.120.809 3.396.846 (7.106.550) (5.531.040) Unrecognised actuarial loss 2.821.256 2.472.533 Net liability recognised in the statement of financial position (4.285.294) (3.058.507) The principal actuarial assumptions used for the actuarial valuation were: 2010 2009 % % Discount rate 5,41 5,24 Expected return on plan assets 5,39 5,75 Future salary increase 6,00 6,00 48 Αnnual Report 2010
Notes to the Financial Statements as at 31 December 2010 6. Staff costs (continued) Retirement benefits – Defined benefit scheme (continued) The expense recognised in the income statement in respect of the defined benefit scheme is as follows: 2010 2009 € € Current service cost 1.013.293 904.506 Interest expense on obligations 461.492 400.884 Expected return on plan assets (188.374) (167.977) Actuarial loss recognised in the year 89.000 88.484 1.375.411 1.225.897 Movement in the liability presented on the statement of financial position (Note 21): 2010 2009 € € Net liability at 1 January (3.058.507) (1.858.582) Expense recognised in the income statement (1.375.411) (1.225.897) Employer contributions for the year 148.624 25.972 Net liability at 31 December (4.285.294) (3.058.507) The movement in the present value of obligations of the plan is: 2010 2009 € € 1 January 8.927.886 7.077.202 Current service cost 1.013.293 904.506 Interest on liabilities 461.492 400.884 Benefits paid from the plan (148.624) (25.972) Actuarial (gains)/losses (26.688) 571.266 31 December 10.227.359 8.927.886 Movement in plan assets: 2010 2009 € € Fair value of plan assets on 1 January 3.396.846 2.904.919 Expected return on plan assets 188.374 167.977 Employer contributions for the year 148.624 25.972 Benefits paid for the year (148.624) (25.972) (Losses)/gains of plan assets (464.411) 323.950 Fair value of plan assets at 31 December 3.120.809 3.396.846 Actual (decrease)/increase in the return on plan assets (276.037) 491.927 Annual Report 2010 49
Page 1: ANNUAL REPORT 2010
Page 5 and 6: Contents Notice of Annual General M
Page 7 and 8: CHAIRMAN’S STATEMENT Dear Shareho
Page 9 and 10: Report on Corporate Governance Boar
Page 11 and 12: Report on corporate governance Base
Page 13 and 14: Report on corporate governance Biog
Page 15 and 16: Report on corporate governance Biog
Page 17 and 18: Report on corporate governance Audi
Page 19 and 20: Report on corporate governance Remu
Page 21 and 22: Report on corporate governance Risk
Page 23 and 24: Report on corporate governance Remu
Page 25 and 26: Statement by the Members of the Boa
Page 27 and 28: Directors’ Report Board of Direct
Page 29: Directors’ Report Shareholders ho
Page 32 and 33: Income Statement for the year ended
Page 34 and 35: Statement of financial position for
Page 36 and 37: Statement of Cash Flows for the yea
Page 38 and 39: Summary of Significant Accounting P
Page 52 and 53: Notes to the Financial Statements a
Page 80 and 81: Independent Auditor’s Report to t
Page 82 and 83: Main Offices, Services and Banking
Page 84: www.usbbank.com.cy

Annual Report 2010 (PDF) - USB Bank

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