Page 177 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
(m) Retirement benefit obligations
Defined benefit plan
The Group operates a a a a a a a a a a final salary defined benefit plan
the assets of which are held independently and administered by Swan Life Ltd These benefits are funded The The cost of providing pensions under the the plan
is determined using the the projected unit credit valuation method
Re-measurements comprising of of actuarial gains and and losses the the the effect of of the the the asset ceiling excluding net interest and and the the the return on on plan
assets (excluding net interest) are recognised immediately in in in fin the statement of financial position with a a a a a a a a corresponding debit or or credit to retained earnings through the the the the other comprehensive income in in in in in in the the the the period in in in in in in which they occur Re-measurements are not reclassified to profit or loss in subsequent periods Past service costs are recognised in profit or loss on the earlier of:
• The date of the plan
amendment or curtailment and • The date that the Group recognises restructuring related costs Net interest is is is calculated by applying the the the discount rate to the the the net defined benefit liability or asset The Group recognise the the the following changes in in fin in in the net defined benefit obligation under administrative expenses in in fin in in profit or loss:
• Service costs costs costs comprising current service service costs costs costs past service service costs costs costs gains and and losses on on curtailments and and non-routine settlements • Net interest expense or income Severance allowance on retirement
For employees that are not covered under any pension plan
the net present value of severance allowances payable under under the the Workers’ Rights Rights Act Act (WRA) formerly under under the the Employee Rights Rights Act Act 2008 is calculated independently by a a a qualified actuary AON Hewitt Ltd Ltd and Swan Life Ltd Ltd The expected cost of these benefits is accrued over the the service lives of of employees on a a a a a a a a a a similar basis to that for the defined benefit plan
The present value of of severance allowances has been disclosed as unfunded obligations
under employee benefit liability (n) Cash and cash equivalents
Cash at at at bank and and on on hand in fin the statement of financial position are measured at at at amortised cost For the the purpose of of of the the consolidated statement of of of cash cash cash cash flows cash cash cash cash and and cash cash cash cash equivalents
consist of of of cash cash cash cash at at at bank and and on on on hand net of outstanding bank overdrafts (o) Impairment of non-financial assets The Group assesses at at at at at each reporting date whether there is an an an indication indication that an an an asset may be impaired If any indication indication exists or or when annual impairment testing for an an asset asset is is required the the Group estimates the the asset’s recoverable amount An asset’s asset’s recoverable amount is is the higher of of an an asset’s asset’s or cash-generating units (CGU) fair value less costs of of disposal and its value in in in in use Recoverable amount is determined for an individual asset asset unless the asset asset does not generate cash inflows that are largely independent of of of those from other assets assets or or groups of of of assets assets Where the the carrying amount of of of an asset asset asset or or CGU exceeds its its recoverable recoverable amount amount the asset is is considered impaired and is is written down to its its recoverable recoverable amount amount UBP INTEGRATED REPORT 2020
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FINANCIAL CAPITAL CORPORATE MANAGEMENT STATEMENTS
REPORTS GOVERNANCE APPROACH
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