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2005 ANNUAL REPORT67The movements in the retirement benefit assets recognized in the books are as follows:ConsolidatedParent2005 2004 2005 2004Balance at beginning of year P 22,967 (P 36,407 ) P 4,198 ( P 21,191)Expense recognized ( 70,846) ( 66,608 ) ( 66,958) ( 61,611)Contributions paid 233,111 125,982 228,863 87,000Balance at end of year P 185,232 P 22,967 P 166,103 P 4,198For determination of the retirement benefits, the following actuarial assumptions were used:ConsolidatedParent2005 2004 2005 2004Discount rates 12% 14% 12% 14%Expected rate of return on plan assets 10% 10% 10% 10%Expected rate of salary increases 10% 10% 10% 10%21. TAXATION21.1 Current and Deferred TaxesThe major components of tax expense (income) for the years ended December 31 are as follows:ConsolidatedParent2005 2004 2005 2004Statements of income:Current tax expense:Regular corporate income tax (RCIT)(at 35% in 2005 and 32% in 2004) P 46,856 P 8,167 P - P -Minimum corporate income tax (MCIT) (at 2%) 29,111 37,454 29,111 28,433Final tax:At 20%, 15%, 10% and 7.5% 265,579 202,923 234,856 167,472341,546 248,544 263,967 195,905Deferred tax expense (income) relating to originationand reversal of temporary differences 189,741 ( 287,674 ) 170,792 ( 286,021)Tax expense (income) reported in the statementsof income P 531,287 (P 39,130 ) P 434,759 (P 90,116)ConsolidatedParent2005 2004 2005 2004Statements of changes in capital funds:Deferred tax relating to fair value gainon available-for-sale financial assets P 5,916 P 1,225 P - P -Tax income reported in thestatements of changes in capital funds P 5,916 P 1,225 P - P -