Page 49 - SABN AR 2021

1.8
Impairment of non-financial assets
An impairment loss of assets carried at cost, less any accumulated depreciation or amortisation, is recognised immediately in profit or loss.
At each reporting date, an entity assesses whether there is any indication that an impairment loss recognised in prior periods may no longer exist or may have decreased. If any such indication exists, the recoverable amounts of those assets are estimated.
The increased carrying amount of an asset attributable to a reversal of an impairment loss should not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods.
A reversal of an impairment loss of assets carried at cost, less any accumulated depreciation or amortisation other than goodwill, is recognised immediately in profit or loss.
Share capital and equity
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Employee benefits
The net defined benefit obligation is determined by discounting the estimated future benefit that employees have earned in the current and prior periods, and deducting the fair value of any plan assets. When there is a net defined asset, the asset is limited to the present value of the economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan.
Pension and retirement funds
According to the projected unit credit method, the expected costs of post-employment defined benefits are charged to profit or loss over the expected service life of the employees entitled to these benefits. The costs are actuarially assessed, and expense adjustments and past-service costs resulting from plan amendments are amortised over the expected average remaining service life of the employees.
The SABN operates various pension schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, and the contributions are determined by periodic actuarial calculations. The Company has both defined benefit and defined contribution plans.
A defined benefit plan is a pension plan that defines the amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors, such as age, years of service and compensation.
A defined contribution plan is a pension plan under which the SABN pays fixed contributions into a separate entity or fund.
The Company has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employees’ benefits relating to employee service in the current and/or prior periods.
For defined contribution plans, the SABN pays contributions to publicly or privately administered pension plans on a mandatory, contractual or voluntary basis. The contributions are recognised as employee benefit expenses when they are due.
When a plan is curtailed or changed, the change that relates to past service or the gain or loss on curtailment is recognised in profit or loss.
Post-employment benefits
The SABN provides post-employment medical and group life benefits to qualifying employees and retired personnel by subsidising a portion of their medical aid and group life contributions.
1.9
1.10
South African Bank Note Company (RF) Proprietary Limited
Annual Report 2021
49