The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 199Notes to the Consolidated Financial StatementsBANKGROUP2009 2008(Reclassified)2009 2008(Restated)Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘00035.a.4 Movement in Plan AssetsFair Value of Plan Assets as at 1st January 542,563 421,215 558,254 434,759Effect of Change in Accounting Policy due toAdoption of SLAS 16 (Revised 2006) – 88,917 – 88,917Revised Balance as at 1st January 542,563 510,132 558,254 523,676Expected Return on Plan Assets 75,959 92,181 78,085 94,376Contribution Paid into Plan 31,739 134,816 31,739 134,816Benefits Paid by the Plan (50,485) (136,705) (61,169) (136,705)Unrecognised Actuarial Gains/(Loss)on Plan Assets (3,856) (57,861) 5,068 (57,909)Fair Value of Plan Assets at 31st December 595,920 542,563 611,977 558,25435.a.5 Unrecognised Actuarial (Gain) or LossBalance as at 1st January 189,550 – 189,550 –Actuarial (Gain)/Loss for Year - Obligation (149,068) 131,689 (148,524) 131,689Actuarial (Gain)/Loss for Year - Plan Assets 3,856 57,861 3,856 57,861Actuarial Gain/(Loss) Immediately Recognised (6,372) – (6,916) –Balance as at 31st December 37,966 189,550 37,966 189,55035.a.6 Unrecognised Past Service Cost Non-Vested BenefitsBalance as at 1st January – – – –Past Service Cost/(Gain) Non-Vested Benefits** 10,633 – 10,633 –Amount Recognised in the Income Statement (3,544) – (3,544) –Balance as at 31st December 7,089 – 7,089 –** The Past Service Cost on Non-Vested Benefits is recognised on a straight line basis over 3 years.35.a.7 Amount Recognised in the Income StatementCurrent Service Cost 52,295 98,791 55,481 102,259Interest Cost 150,994 124,769 155,012 128,938Expected Return on Plan Assets (75,959) (92,181) (78,085) (94,376)Actuarial (Gains)/Loss Immediately Recognised 6,372 – (1,867) 767Past Service Cost/(Gain) Vested Benefits (588,269) – (588,269) –Past Service Cost/(Gain) Non-Vested Benefits (3,544) – (3,544) 3,688(458,111) 131,379 (461,272) 141,276