2007 / 2008 Annual Report - Eastern Cape Development Corporation

EASTERN CAPE DEVELOPMENT CORPORATION 2007/0813 Reserves (continued)Pre-incorporation reserveProperty revaluation reserveFair value adjustment available-for-sale-assets reserveAnalysis of carrying valueProperty revaluation reserveBalance at beginning of yearTotal fair value adjustment on investment properties transferred from retained earnings2008R’000377,324248,54274,173Group2007R’000378,315194,595-2008R’000Corporation384,265222,00574,1802007R’000385,255174,637-700,039 572,910 680,450 559,892194,59553,947132,29162,304174,63647,369113,99460,643248,542 194,595 222,005 174,63714 Interest bearing borrowingsAt amortised costDevelopment Bank of South Africa 19,084 20,505 19,084 20,505The above borrowings are secured by investments as disclosed in note 7. Details of the loans are set out in Annexure 2.Non-current liabilitiesAt fair value 17,601 17,343 17,601 17,343Current liabilitiesAt fair value 1,483 3,162 1,483 3,16215 Retirement BENEFIT obligation19,084 20,505 19,084 20,505The Corporation provides retirement benefits to employees by contributing to the Eastern Cape DevelopmentCorporation pension fund. The pension fund was created on conversion of the Eastern Cape Development Corporationprovident fund to a pension fund during the year. An actuarial valuation of the fund was conducted at conversion andthe actuary found the fund to be in a sound financial position. The pension fund is governed by the Pension Funds Act,1956.Retirement benefit costs are expensed in the income statement as and when incurred. Furthermore, the Corporation isresponsible for 50% of the contributions to medical aid funds of retired employees.Post retirement medical benefitsPresent value of the retirement benefit obligationUnrecognised actuarial losses at year end14,092(3,336)9,656-14,092(3,336)9,656-10,756 9,656 10,756 9,656Amounts included in profit or loss for the periodEmployee costsCurrent service costInterest cost5387425096655387425096651,280 1,174 1,280 1,17491