Annual Report 2008 English [PDF, 2.69 MB] - Tessenderlo Group

financial report 2008
exceeds 10 % of the greater of the present value of the defined benefit obligation and the fair value of
plan assets, that portion is recognised in the income statement over the expected average remaining
working lives of the employees participating in the plan. Otherwise, the actuarial gain or loss is not
recognised.
Where the calculation results in a benefit to the Group, the recognised asset is limited to the net total
of any unrecognised actuarial losses and past service costs and the present value of any future refunds
from the plan or reductions in future contributions to the plan.
• Termination benefits (pre-retirement plans, other termination obligations)
These benefits arise as a result of the company’s decision to terminate the employment of an employee
or group of employees before the normal retirement date or of an employee’s decision to accept
voluntary redundancy in exchange for those benefits.
These benefits are accrued for at the moment of notification.
• Equity compensation benefits
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A stock option plan allows senior management to acquire shares of the Company. The option’s exercise
price equals the lowest of the average market price of the underlying shares in the 30 trading days
preceding the offer date or the market price on the last day preceding the offer date. These share-based
payments are recognised in the financial statements based on the fair value of the awards measured at
grant date, spread over the vesting period. When the options are exercised, equity is increased by the
amounts of the proceeds received.
• Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as
the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus or profitsharing
plans if the Group has a present legal or constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation can be estimated reliably.
(R) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is
recognised in the income statement except to the extent that it relates to items recognised directly to
equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous
years.
Deferred tax is provided using the balance sheet liability method, for temporary differences arising
between the carrying values of assets and liabilities for financial reporting purposes and the basis used
for taxation purposes. The following temporary differences are not provided for: the initial recognition
of assets or liabilities that affects neither accounting nor taxable profit and differences relating to