IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

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Wiley IFRS: Practical Implementation Guide and Workbook

Benevolent Corp. Defined Contribution Plan STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS December 31,2006 (in thousands of U.S. $) Assets Investments at fa ir value: U.S. government securities

$ 10,000 13,000 13,000 13,000 12,000 12,000 11,000 84 000 25,000 15,000 12 000 52 000 15 000 lSI 000

U.S. munici pal bonds U.S. equity securitie s EU equity securities U.S. debt securities EU corporate bond s Others

Total investments Receivables: Amount s due from stockbrokers on sale of securities Accrued interest Dividends receivable Total receivable s Cash: Total assets Liabilities Accounts payable Amount s due to stockbrokers on purchase of securities Benefits payable to participants-due and unpaid Total accounts payable Accrued expenses Total liabilities Net assets available for benefit s

20,000 21000 41000 21 000 62 000 £2.QQQ

5. DEFINED BENEFIT PLANS 5.1 Defined benefit plans are those plans where the benefits are guaranteed amounts and amounts to be paid as retirement benefits are determined by reference to a formula , usually based on em– ployees' earnings and/or number of years of service. The critical factors are thus the retirement benefits that are fixed or determinable, without regard to the adequacy of assets that may have been set aside for payment of the benefits. This clearly is different from the way defined contribution plans work; they provide the employees, upon retirement, amounts that have been set aside, plus or minus investment earnings or losses that have been accumulated thereon, however great or small that amount may be. 5.2 lAS 26 requires that the report of a defined benefit plan should contain either (l) A statement that shows a] The net assets available for benefits; b] The actuarial present value of promised retirement benefits , distinguishing between vested and nonvested benefits ; and c] The resulting excess or deficit ; or (2) A statement of net assets available for benefits including either a] A note disclosing the actuarial present value of promised retirement benefits , dis– tinguishing between vested and nonvested benefits; or b] A reference to this information in an accompanying actuarial report. 5.3 lAS 26 recommends, but does not mandate, that in each of the three formats described above, a report of the trustees in the nature of a management or directors' report and an investment report may also accompany the statements. 5.4 The Standard does not make it incumbent upon the plan to use annual actuarial valuations. If an actuarial valuation has not been prepared on the date of the report, the most recent valuation should be used as the basis for preparing the financial statement. The Standard does, however, re-