Reconciliation of opening and closing provisions
31 Mar ‘17
31 Mar ‘16
£’000
£’000
Provision at start of period
8,399
8,909
Unwinding of the discount factor (interest expense)
430
114
Deficit contribution paid
(989)
(568)
Remeasurements - impact of any change in assumptions
239
(56)
Remeasurements - amendments to the contribution schedule
-
-
Provision at end of period
8,079
8,399
Income and expenditure impact
31 Mar ‘17
31 Mar ‘16
£’000
£’000
Interest expense
182
100
Remeasurements – impact of any change in assumptions
239
(56)
Costs recognised in income and expenditure account
421
44
Assumptions
31 Mar ‘17
31 Mar ‘16
31 Mar ‘15
% per annum % per annum % per annum
Rate of discount
1.33
2.06
1.92
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 ‘17
31 Mar ‘16
31 Mar ‘15
£’000
£’000
£’000
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
1,025
1,063
1,103
990
868
898
804
702
723
372
-
-
964
1,025
1,063
1,103
990
868
898
804
702
723
372
-
593
702
747
778
809
688
556
577
473
362
373
191
The association 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 Association’s Statement of Financial Position.
80
Accord Housing Association