Page 80 - UBF AR 2018 - E Version

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2018

26 POST EMPLOYMENT LIABILITY Notes 2018 2017
26.1 The movement of the Post Employment Liability
26.2 Rs. Rs.
of the Company is given below; 26.3
14,757,279 12,836,230
Post Employment Liability as at 01 April 3,723,694 2,652,531
Amount recognised in Income Statement (414,304)
Amount recognised in Other Comprehensive Income (5,378,191) (317,178)
Payments made during the year (312,500)
Balance as at 31 March 14,757,279
12,790,282
26.2 Amount recognised in Income Statement 1,953,505
2,187,461 699,026
Service cost 1,536,233
Net interest on the net Post Employment Liability 2,652,531
3,723,694
26.3 Amount recognised in Other Comprehensive Income 408,913
47,719 (823,217)
Liability (gains)/ losses due to changes in assumptions (5,425,910) (414,304)
Liability experience (gains)/ losses arising during the year
(5,378,191) 2017

26.4 The principal assumptions used in determining Post Employment 2018 12.9%
Liability are shown below; 10.5%
10.0% 55 Years
Discount Rate 9.0% Mortality Table
Salary Increment Rate
Retirement Age 55 Years
Mortality Mortality Table

26.5 Messers Actuarial & Management Consultants (Pvt) Limited, a firm of professional actuaries has carried out
an independent actuarial valuation of the defined benefit plan and accordingly compatible assumptions have
been used in determining the cost of the retirement benefits.

26.6 The following table demonstrates the sensitivity to a reasonably possible change in the key assumptions

employed with all other variables held constant in the employment liability measurement.

Increase/(Decrease) in discount rate- % +1% -1%

Increase/(Decrease) in salary increment rate - % +1% -1%

Sensitivity effect on Statement of Other Comprehensive Income 192,057 (199,552) (252,877) 247,510
Sensitivity effect on Post Employment Liability (192,057) 199,552 252,877 (247,510)

78 UB Finance