QUADIENT - 2019 Universal Registration Document
6
FINANCIAL STATEMENTS Consolidated financial statements
10-2: Employee benefits
Employee benefits are measured in accordance with IAS 19. They comprise short-term benefits, long-term benefits and post-employment benefits. Group employees are entitled to short-term benefits such as paid vacation, paid sick leave, bonuses and other benefits (other than termination benefits), payable within twelve months of the end of the period in which the corresponding services are rendered by employees. These benefits are recorded in current
liabilities and expenses of the period in which the service is rendered by the employee. Long-term benefits (during employment), payable before the employee’s departure, correspond primarily to long-service bonuses. Post-employment benefits are paid when an employee retires and include retirement bonuses, supplementary pension benefits and coverage of certain medical costs for retired employees and employees on early retirement.
31 January 2020 31 January 2019
Wages and salaries, bonuses and commissions
366.4
356.6
Social costs
98.4
95.0
Share-based payments
0.7
0.7
Pension expenses under defined contribution plans
0.3
0.2
TOTAL
465.8
452.5
10-3: Retirement benefit obligations
10-3-1: ACCOUNTING PRINCIPLES
Group companies participate in pension schemes and other staff benefits in accordance with the laws and customs of each country. The measurement and accounting policies applied by the Group with respect to these liabilities are in accordance with IAS 19: defined benefit schemes under which the employer ● guarantees a future level of benefits: the liabilities are measured on the basis of actuarial valuations using the projected unit of credit method. These calculations use assumptions regarding mortality rates, staff turnover and wages, which reflect the economic conditions in each country or for each Group company. The liabilities are recognized under
“Provisions for retirement benefit obligations”. Termination benefits are generally lump-sum payments based upon the number of years served by the employee and his/her salary as at retirement or termination of employment. Pension benefits are generally determined using a formula based on the number of years served by the employee and his/her average final earnings; defined contribution schemes: the cost of these ● schemes is recognized as an expense on the basis of contributions made. These schemes have no legal or constructive obligation to pay further contributions, the employer’s obligation is limited to the regular payment of contributions.
10-3-2: OBLIGATION DETAILS
The main retirement obligation for the Group is the justification to recognize the net asset of the pension fund obligation for the United Kingdom. This retirement in the consolidated balance sheet, in accordance with obligation is mainly covered by a pension fund showing a IAS 19/IFRIC 14.
net asset of 43.0 million euros (36.2 million pounds sterling) as at 31 January 2020 compared with 37.2 million euros (32.6 million pounds sterling) as at 31 January 2019. It is accounted for in non-current assets. When a pension plan shows a net asset based on the assumptions used, IAS 19 states that this net asset should only be recognized in the balance sheet if an economic benefit is possible for the Company. Regarding the rules of the pension plan, Quadient has an unconditional repayment right of all the amounts left in the plan after the payment of the last pension to the last member of the pension plan. Quadient considers this to be a sufficient
The United Kingdom pension plan has not admitted any new members since 2001 and the rights of its members were frozen in June 2006. Every three years, the British regulator requires a valuation using different assumptions than those used for the valuation under IAS 19. If the valuation requested by the British regulator shows a deficit, Quadient has to make payments to offset it. In 2017, the valuation performed for the British regulator did not identify any deficit. The next valuation will be performed in 2020.
162
UNIVERSAL REGISTRATION DOCUMENT 2019
Made with FlippingBook Publishing Software