Annual Report - Ahli United Bank

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Annual Report - Ahli United Bank

Notes to theConsolidated Financial Statements (Contd.)26 EMPLOYEE BENEFITS (continued)Defined benefits pension plan (continued)The major categories of plan assets as a percentage of the fair value of the total plan assets were as follows:2009 2008% %Equities 70 69Government bonds 14 13Corporate bonds 15 17Others 1 1Total 100 100All bonds in the plan assets are investment grade and traded in an active market.The present value of scheme’s obligations, the fair value of plan assets and the deficit arising thereon along with the effect ofdifferences between the previous actuarial assumptions and what has actually occurred (experience adjustments) for the years ended31 December have been presented below:2009 2008 2007 2006 2005US$ ’000 US$ ’000 US$ ’000 US$ ’000 US$ ’000Present value of scheme’s obligations 148,900 107,147 158,447 149,012 126,380Fair value of plan assets (112,561) (82,023) (133,978) (118,300) (94,600)Deficit 36,339 25,124 24,469 30,712 31,780Experience adjustments on:Plan liabilities 3,330 - 3,690 2,154 4,868Plan assets (13,643) 25,096 874 (1,615) (10,187)Other defined benefit plansThe charge to the consolidated statement of income on account of end of service benefits for the year amounted to US$ 6,400thousand (2008: US$ 6,323 thousand). There are no material differences between the carrying amount of the provision for end ofservice benefits and the amount arising from an actuarial computation thereof.Defined contribution plansThe Group contributed US$ 6,421 thousand (2008: US$ 5,299 thousand) during the year towards defined contribution plans. TheGroup’s obligations are limited to the amounts contributed to various schemes.27 MANAGED FUNDSFunds administrated on behalf of customers to which the Group does not have legal title are not included in the consolidated balancesheet. The total market value of all such funds at 31 December 2009 was US$ 4,190 million (31 December 2008: US$ 5,371 million).28 DERIVATIVESIn the ordinary course of business the Group enters into various types of transactions that involve derivative financial instruments. Aderivative financial instrument is a financial contract between two parties where payments are dependent upon movements in pricein one or more underlying financial instruments, reference rates or indices.84 AUB Annual Report 2009

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