Reconciliation of opening and closing provisions
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
31 March ‘16
31 March ‘15
£000 £000
1,450
17
(95)
(9)
-
945
27
(92)
48
522
Provision at end of period
1,363
1,450
Income and expenditure impact
Interest expense
17
27
Remeasurements – impact of any change in assumptions
(9)
48
Remeasurements – amendments to the contribution schedule
-
522
Costs recognised in income and expenditure account
8
597
Assumptions
Rate of discount
31 March ‘16
% per annum
31 March ‘15
% per annum
31 March ‘14
% per annum
2.06
1.92
3.02
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan
contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan
contributions. The following schedule details the deficit contributions agreed between the association and the scheme at each year
end period:
31-Mar-16 31-Mar-15 31-Mar-14
£’000
£’000 £’000
Year 1
146
95
92
Year 2
152
99
95
Year 3
157
102
99
Year 4
163
106
102
Year 5
151
110
106
Year 6
139
98
110
Year 7
144
84
98
Year 8
135
87
84
Year 9
125
76
87
Year 10
129
65
76
Year 11
66
67
65
Year 12
-
34
67
Year 13
-
-
34
The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery
agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in
the period in which it arises. It is these contributions that have been used to derive the company’s balance sheet liability.
102
Accord Group