Page 287 - SAMRC Annual Report 2024-2025

FINANCIAL INFORMATION

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
SIGNIFICANT ACCOUNTING POLICIES

(CONTINUED)

1.15 Employee benefits (continued)

The entity recognises gains or losses on the curtailment or settlement of a defined benefit plan when the
curtailment or settlement occurs. The gain or loss on a curtailment or settlement comprises:
• any resulting change in the present value of the defined benefit obligation; and
• any resulting change in the fair value of the plan assets.
Before determining the effect of a curtailment or settlement, the entity re-measures the obligation (and
the related plan assets, if any) using current actuarial assumptions (including current market interest rates
and other current market prices).

When it is virtually certain that another party will reimburse some or all of the expenditure required to
settle a defined benefit obligation, the right to reimbursement is recognised as a separate asset. The
asset is measured at fair value. In all other respects, the asset is treated in the same way as plan assets.
In surplus or deficit, the expense relating to a defined benefit plan is not presented as the net of the
amount recognised for a reimbursement.
The entity offsets an asset relating to one plan against a liability relating to another plan when the entity
has a legally enforceable right to use a surplus in one plan to settle obligations under the other plan and
intends either to settle the obligations on a net basis, or to realise the surplus in one plan and settle its
obligation under the other plan simultaneously.

Actuarial assumptions
Actuarial assumptions are unbiased and mutually compatible.

Financial assumptions are based on market expectations, at the reporting date, for the period over
which the obligations are to be settled.

The rate used to discount post-employment benefit obligations (both funded and unfunded) reflect the time
value of money. The currency and term of the financial instrument selected to reflect the time value of money
is consistent with the currency and estimated term of the post-employment benefit obligations.
Post-employment benefit obligations are measured on a basis that reflects:
• estimated future salary increases;
• the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes
beyond those terms) at the reporting date; and
• estimated future changes in the level of any state benefits that affect the benefits payable under a
defined benefit plan, if, and only if, either:
• those changes were enacted before the reporting date; or
• past history, or other reliable evidence, indicates that those state benefits will change in some
predictable manner, for example, in line with future changes in general price levels or general
salary levels.
Assumptions about medical costs take account of estimated future changes in the cost of medical
services, resulting from both inflation and specific changes in medical costs.

SAMRC ANNUAL REPOR T 2025-26 285