2009 - Jaarverslag

24 SHARE CAPITAL24.1 Share capitalThe share capital is classified as equity.24.2 Repurchase of own sharesOn the repurchase of share capital which is stated in the balance sheet as equity, the amount of the paidconsideration, including directly attributable costs, is stated as a change in equity. Repurchased shares areclassified under ‘Other reserves’ and presented as a deduction from total assets.24.3 DividendDividend is stated as a liability in the period in which it is declared.25 PENSION LIABILITIES25.1 Defined contribution schemesLiabilities relating to contributions to defined contribution pension schemes are charged to the statement ofcomprehensive income in the period to which they relate.25.2 Defined benefit schemesThe Group’s net liability in respect of defined benefit pension schemes is calculated separately for each schemeby estimating the amount of the future entitlement which employees have earned in the present and previousreporting periods in exchange for their services. This entitlement is discounted in order to determine the presentday value, with the fair value of the fund investments being deducted. The discount rate is the yield on thereporting date of bonds which have an AA credit rating and a period to maturity which approximates the term ofthe Group’s liabilities and are denominated in the currency in which the entitlements arise. The calculation isperformed by an authorised actuary on the basis of the projected unit credit method. If the entitlements under apension scheme are increased, the proportion of the higher entitlement which relates to employees’ past serviceis stated as an expense in the statement of comprehensive income on a straight-line basis over the averageperiod up to the granting of the rights. If the rights are granted immediately, the expense is stated immediatelyin the statement of comprehensive income.With regard to the actuarial profits and losses that arise in the calculation of the Group’s liability under apension scheme, in so far as any accumulated actuarial profits or losses not yet recognised amount to morethan 10% of the discounted value of the gross liabilities in respect of defined benefit pension rights or of thefair value of the fund investments if this is greater (in other words: remains within the corridor), that element isrecognised in the statement of comprehensive income over the expected average remaining service period ofthe employees participating in the scheme. For the remainder, the actuarial profit or loss is not recognised.When the calculation results in a receivable for the Group, the recognised asset item is limited to the net totalof any unrecognised actuarial losses and back-service costs and the discounted value of the lower of futurerepayments by the fund and future pension contributions.Royal Ten Cate Annual Report 2009 101