103 / 170
2016
R’000
2015
R’000
25.
POST-RETIREMENT OBLIGATIONS
(continued)
Unfunded defined benefit retirement plans
(continued)
Movement in the liability for unfunded defined benefit early retirement plan
Balance at beginning of year
177 041
155 154
Benefits paid
–
(7 092)
Current service costs
3 335
5 762
Interest expense
1 067
2 976
Transfer to pension fund
(3 657)
(648)
Actuarial adjustments recognised in other comprehensive income
3 454
17 792
Acquisition of businesses
–
12 314
Settlement
(199 705)
–
Exchange rate adjustments on foreign plans
32 349
(9 217)
Balance at end of year
13 884
177 041
%
%
Key actuarial assumptions
Discount rate
0,5 – 1,2
0,9 – 2,1
Salary increase rate
1,5 – 2,75
1,5 – 2,75
Date of valuation
June 30 2016
June 30 2015
26.
PUTTABLE NON-CONTROLLING INTEREST LIABILITIES
The acquisition of Caterfood during the year resulted in a put option being agreed with the non-controlling shareholder. Certain of the put
option arrangements were in existence at June 30 2015. The put options entitle the non-controlling shareholders to sell their holdings in the
subsidiaries to the group at contracted dates and amounts.
The group has the following put options:
■
■
The non-controlling shareholders in Distribuzione Alimentari Convivenze SPA (DAC) have the option to put their 40% interest in DAC to
the group, using a market valuation formula on or about June 30 2019.
■
■
The non-controlling shareholder in Caterfood has the option to put their 12% interest in Caterfood to the group, using a market valuation
formula on or about September 30 2017.
2016
R’000
2015
R’000
The effect of granting these put options on the group’s results can be summarised as follows:
Balance at beginning of year
913 638
–
Arising on the granting of put options to non-controlling interests during the year
44 700
902 410
Unwinding of present value discount recognised in the statement of profit or loss
23 085
18 363
Exchange rate adjustments
187 498
(7 135)
1 168 921
913 638
DAC
Discount rate
1,99%
1,99%
Expected settlement date
July 1 2019
July 1 2019
Caterfood
Discount rate
5,00%
–
Expected settlement date
September 30 2017
–
Bidcorp Limited Annual integrated report 2016 |
Page 99
Financial overview