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Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of financial position
Statement of changes in consolidated equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Annexed tables
Note 28 - Employee benefits
(thousand Euros) 31/12/2010 31/12/2009 Change
Employee severance indemnities 11,794 12,138 (344)
Employee pension funds 2,487 2,396 91
Directors severance indemnities 994 915 79
Other 43 43 -
Total 15,318 15,492 (174)
Employee severance indemnities
The Employee severance indemnity represents the obligation to employees under Italian law (amended by Law
296/06) that has accrued up to December 31, 2006 and that will be settled when the employee leaves the company.
In certain circumstances, a portion of the accrued liability may be given to an employee during his working life as an
advance. This is an unfunded defined benefit plan, under which the benefits are almost fully accrued, with the sole
exception of future revaluations.
The procedure for the determination of the Company’s obligation with respect to employees was carried out by an
independent actuary according to the following stages:
Projection of the Employee severance indemnity already accrued at the assessment date and of the portions that
will be accrued until when the work relationship is terminated or when the accrued amounts are partially paid as an
advance on the Employee severance indemnities;
Discounting, at the valuation date, of the expected cash flows that the company will pay in the future to its own employees;
Re-proportioning of the discounted performances based on the seniority accrued at the valuation date with respect to
the expected seniority at the time the company must fulfill its obligations. In accordance to Law 296/06 re-proportioning
has been applied to those companies in which there are less than 50 employees and do not pay contributions
to a separate fund.
Reassessment of Employee severance indemnities in accordance to IAS 19 was carried out “ad personam” and on
the existing employees, that is analytical calculations were made on each employee in force in the company at the
assessment date without considering future work force.
The actuarial valuation model is based on the so called technical bases which represent the demographic, economic
and financial assumptions underlying the parameters included in the calculation.
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