| Pensions:
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation.
Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in accruals in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.
Employee benefit trusts:
The company has purchased trusts for the benefit of employees and certain of their dependants. Monies held in this trust are held by the independent trustees and managed at their discretion.
Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds to employees in respect of past services is declared and the date that assets of the trust vest in identified individuals.
Where monies held in a trust are determined by the company on the basis of the employees' past services to the business and the company can obtain no future economic benefit from these monies, such monies, whether in the trusts or accrued for by the company are charged to the profit and loss account in the period to which they relate.
Employer-Financed Retirement Benefit Scheme (EFRBS)
The company has established trusts for the benefit of employees and persons connected with them. Monies held in these trusts are held by independent trustees and managed at their discretion. The trustees are empowered to provide both retirement and other employee benefits.
Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds to employees in respect of past services is declared and the date that assets of the trust vest in identified individuals.
Where monies held in a trust are determined by the company on the basis of the employees' past services to the business and the company can obtain no future economic benefit from these monies, such monies, whether in the trusts or accrued for by the company are charged to the profit and loss account in the period to which they relate.
Where monies held in a trust are determined by the company on the basis of the employees' past services to the business and are payable after completion of the employment, such monies are charged to the profit and loss account in the period during which services are rendered to employees. |