NOTES TO THE FINANCIAL STATEMENTS
ASSETS AND LIABILITIES – OPERATING AND INVESTING
RAMSAY HEALTH CARE LIMITED
16 Other assets (net) (Continued)
Plan assets are invested as follows:
Equities 27.8 21.6
Bonds 46.1 49.9
Property 8.3 9.4
Other 17.8 19.1
The Group expects to contribute nil to its defined benefit obligations in 2022.
Actuarial losses recognised in the Statement of Comprehensive Income 39.7 10.2
Cumulative actuarial losses recognised in the Statement of Comprehensive Income 142.3 102.6
The principal actuarial assumptions used in determining obligations for the liabilities are shown below (expressed as weighted averages):
Discount rate 0.9 to 2.0 1.1 to 1.6
Future salary increases 1.0 to 2.9 1.0 to 2.9
Future pension increases 1.0 to 2.0 1.0 to 2.9
The Group has defined employee benefit obligations in the Nordics and in France, arising from local legislative requirements.
The cost of providing benefits under these obligations are determined using the projected unit credit method using actuarial valuations.
Actuarial gains and losses for the defined obligation are recognised in full in the period in which they occur in Other Comprehensive
Income. Such actuarial gains and losses are also immediately recognised in retained earnings and are not reclassified to profit or loss in
Unvested past service costs are recognised as an expense on a straight line basis over the average period until the benefits become
vested. Past service costs are recognised immediately if the benefits have already vested, immediately following the introduction of, or
changes to, the obligation.
The defined benefit liability comprises the present value of the defined benefit obligation (using a discount rate based on government
bonds) less unrecognised past service costs.
Key Accounting Judgements, Estimates and Assumptions
The actuarial valuation involves making assumptions about discount rates, future salary increases and mortality rates. All assumptions are
reviewed at each reporting date. In determining the appropriate discount rates, the interest rates of corporate bonds in France and the
Nordics is considered. The mortality rate is based on publicly available mortality rates for France and the Nordics. Future salary increases
are based on expected future inflation rates in France and the Nordics.
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