Page 330 - ACCESS BANK ANNUAL REPORTS_eBook

Increase in Liability Total
In thousands of Naira assumption changes comprehensive
by 1% to income
Effect of changes in the assumption to the discount rate Decrease inliability by
5.2% 2,352,750 129,166

Effect of changes in assumption to the salary growth Increase in the liability by
5.2% 2,611,416 (129,500)

Effect of changes in assumption to the mortality rate Increase in the liability by
0.3% 2,488,587 (6,671)

31 December 2016 Impact on defined benefit obligation
Decrease in Liability Total
In thousands of Naira assumption changes comprehensive
by 1% to income
Effect of changes in the assumption to the discount rate Increase in liability by
7.7% 3,232,367 (167,770)

Effect of changes in assumption to the salary growth Decrease in liability by
6.75% 2,909,189 155,408

Effect of changes in assumption to the mortality rate Decrease in liability by
6.75% 3,057,012 7,585

31 December 2017 Impact on defined benefit obligation

Increase in Liability Total
In thousands of Naira assumption changes comprehensive
by 1% to income

Effect of changes in the assumption to the discount rate Increase in the liability by
6.9% 2,910,376 154,221

Effect of changes in assumption to the salary growth Increase in the liability by
7.3% 3,232,322 (167,725)

Effect of changes in assumption to the mortality rate Increase in the liability by
0.03% 3,073,008 (8,411)

The above sensitivity analysis are based on a change in an assumption while holding all another assumptions sonstant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensi-
tivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined
benefit obligation calculated with the projected unit credit method at the end of the year) has been applied as when cal-
culating the pension liability recognised within the statement of financial position. The methods and types of assumptions
used in preparing the sensitivity analysis did not change compared to the previous year.

Actuarial assumptions:
Principal actuarial assumptions at the reporting date (expressed as weighted averages):
The most recent valuation was performed by Alexander Forbes as at 31 December 2017.

330 Access BAnk Plc
Annual Report & Accounts 2017