Minerva Equity Limited - 31 March 2019 Final 19.08.2019 - Flipbook - Page 32
Minerva Equity Limited (formerly DMWSL 881 Limited)
Notes to the financial statements
for the period ended 31 March 2019 (continued)
3 Summary of significant accounting policies (continued)
Exceptional items
Where it is considered that items of income or expense are material and are considered ‘one off’ or
irregular in nature, their nature and amount is disclosed separately on the face of the profit and loss
account where this enhances the understanding of the Group’s financial performance.
Employee Benefits
Short-term benefits
Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised
as an expense in the year in which the service is received.
Defined contribution pension plans
The Group operates defined contribution plans for its employees. A defined contribution plan is a
pension plan under which the Group pays fixed contributions into a separate entity. Once the
contributions have been paid the Group has no further payment obligations. The contributions are
recognised as an expense when they are due. Amounts not paid are shown in accruals in the
balance sheet. The assets of the plan are held separately from the company in independently
administered funds.
Defined benefit pension plan
The Group operates defined benefit scheme arrangements for certain employees. A defined benefit
plan defines the pension benefit that the employee will receive on retirement, usually dependent
upon several factors including age, length of service and remuneration. A defined benefit plan is a
pension plan that is not a defined contribution plan.
The defined benefit scheme arrangements are funded separately, with the assets of the scheme held
separately from those of the Group in a trustee administered fund.
The liabilities recognised in the balance sheet in respect of the defined benefit plan arrangements
are the present value of the defined benefit obligations at the end of the reporting date less the fair
value of the plan assets at the reporting date.
The defined benefit obligation is calculated using the projected unit credit method and discounted at
a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency
and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are
updated at each balance sheet date. The resulting defined benefit liabilities, net of the related
deferred tax, are presented separately on the face of the balance sheet.
The fair value of the plan assets are measured in accordance with FRS 102 and in accordance with
the Group’s policy for similarly held assets.
The cost of the defined benefit plan, recognised in profit and loss as employee costs comprises:
(a) The increase in pension benefit liability arising from the employee service during the year;
and
(b) The cost of the plan introductions, benefit changes, curtailments and settlements.
The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligations and the fair value of plan assets. These costs are recognised in profit or loss as
‘Net interest expense on post-employment benefits.
Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to other comprehensive income. These amounts together with
the return on plan assets, less amounts included in net interest, are disclosed as ‘Remeasurements
of net defined benefit liability’ in the consolidated statement of comprehensive income.
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