Assystem - 2018 Register document

5

BUSINESS REVIEW AND FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

5.3.2 EMPLOYEE BENEFIT OBLIGATIONS

The Group accounts for defined benefit and defined contribution post-employment benefit plans in accordance with the laws and practices of each country in which it operates. Defined contribution plans Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all of the benefits relating to the services rendered by employees prior to retirement. The actuarial risk (that benefits will cost more than expected) and the investment risk (that plan assets will be insufficient to meet expected benefits) are not borne by the employer entity. Contributions to government plans and other defined contribution plans are recognised as an expense for the period in which they are due. No provision is recorded as the Group’s obligation is limited to its contributions to the plans. Defined benefit plans All post-employment benefit plans other than defined contribution plans correspond to defined benefit plans. Under defined benefit plans the entity’s obligation is to provide the agreed benefits to current and former employees. The employer entity may either: ● pay contributions to a separate entity (a fund), but must pay further contributions (or pay unfunded benefits) if the fund does not hold sufficient assets to pay all of the benefits relating to the services rendered by employees; or ● pay the benefits itself, funding them out of its own assets. Consequently, under defined benefit plans the employer entity bears both the actuarial risk and the investment risk. In accordance with IAS 19, “Employee Benefits”, actuarial valuations of post-employment benefit obligations under defined benefit plans are made using the projected unit credit method, based on assumptions for mortality rates, staff turnover and future salary projections. The net defined benefit liability recognised at the reporting date corresponds to the present value of the defined benefit obligation – i.e. the present value of expected future payments required to settle the obligation resulting from employee service in the current and prior periods – less the fair value of plan assets. Actuarial gains and losses are recognised in other comprehensive income. The Group’s defined benefit obligations consist mainly of statutory retirement bonuses payable in accordance with the Syntec collective bargaining agreement applicable in France. These bonuses correspond to vested entitlements determined based on length of service.

NET LIABILITY RECOGNISED IN THE STATEMENT OF FINANCIAL POSITION

2018 14.7

2017 13.7

In millions of euros

Present value of funded or partially-funded post-employment benefit obligations

Fair value of plan assets

-

-

Provision recognised in the statement of financial position

14.7

13.7

CHANGE IN THE NET LIABILITY RECOGNISED IN THE STATEMENT OF FINANCIAL POSITION

2018 13.7

2017 26.4

In millions of euros

Net liability at 1 January

Current service cost

1.4 0.2

1.8 0.3 1.5

Interest expense

Remeasurement of the net liability recognised in equity

(0.4)

Currency translation differences

0.1 0.4

(0.3)

Increases related to business combinations Decreases related to discontinued operations

0.1

-

(15.4) (0.7) 13.7

Benefits paid

(0.7) 14.7

Net liability at 31 December

112

ASSYSTEM

REGISTRATION DOCUMENT 2018