Page 304 - SAMRC AnnualReport 2025-26

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

1.16 Employee benefits (continued)

The amount recognised as a liability for other long-term employee benefits is the net total of the
following amounts:
• the present value of the defined benefit obligation at the reporting date;
• minus the fair value at the reporting date of plan assets (if any) out of which the obligations are to be
settled directly.

The entity shall recognise the net total of the following amounts as expense or revenue, except to the
extent that another Standard requires or permits their inclusion in the cost of an asset:
• current service cost;
• interest cost;
• the expected return on any plan assets and on any reimbursement right recognised as an asset;
• actuarial gains and losses, which shall all be recognised immediately;
• past service cost, which shall all be recognised immediately; and
• the effect of any curtailments or settlements.

Termination benefits
The entity recognises termination benefits as a liability and an expense when the entity is demonstrably
committed to either:
• terminate the employment of an employee or group of employees before the normal retirement date; or
• provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
The entity is demonstrably committed to a termination when the entity has a detailed formal plan for the
termination and is without realistic possibility of withdrawal. The detailed plan includes [as a minimum]:
• the location, function, and approximate number of employees whose services are to be terminated;
• the termination benefits for each job classification or function; and
• the time at which the plan will be implemented.

Termination benefits are payable whenever an employee’s employment is terminated before normal
retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits.
The SAMRC recognises termination benefits as an expense when it is demonstrably committed to
either terminate the employment of current employees according to a detailed formal plan without the
possibility of withdrawal or to provide termination benefits as a result of an offer made to encourage
voluntary redundancy. Benefits falling due more than 12 months after reporting date are discounted to
present value.

Pension Plan
Contributions to a pension plan in respect of service in a particular period are included in the total
cost of employment and are charged to the statement of financial performance in the year in which
they relate as part of the cost of employment. The amount recognised in the surplus or deficit for the
period under defined benefit plans represents the movement in the present value of the defined benefit
obligation and the fair value of the plan assets, after adjusting for contributions paid to the fund, as well
as any unrecognised past service costs. Actuarial gains or losses are recognised in the surplus or deficit
in the period in which it occurs.

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