Investor Presentaiton
ANNUAL REPORT 2020
84
Notes to the Financial Statements
For the year ended 31 December 2020
22
Employee Benefit Liabilities
In thousands of naira
Long service award benefits obligation
Other post employment benefits
(b)
Movement in other Post Employment Benefits
2020
2019
In thousands of naira
2020
2019
1,045,087
322,740
1,367,827
696,310
186,339
At 1 January
186,339
133,457
i.
882,649
Long service award relates to benefits given to staff based on their length of service in the Company. This
benefit is in the form of cash and gift items.
ii.
Other post employment benefits represent the 'terminal milk benefit' which is a post employment benefit
that accrues to the employees and is due at the point of exiting the Company. The benefit was valued as at year end
by Ernst & Young.
The Company has post employment benefit schemes and other long term employee benefit scheme for
its employees. The liabilities are all based on independent actuarial valuations by O. O. Okpaise of Ernst & Young
with FRC registration number of FRC/2012/NAS/00000000738.
The employee benefit liabilities expose the Company to actuarial risks such as longevity risk and interest rate risk.
There are no plans to terminate these benefits.
Included in profit or loss
Past service cost (plan amendment)
Current service costs
(1,186)
21,847
16,039
Interest cost
25,731
21,016
Included in other comprehensive income
Actuarial loss/(gain)
105,866
19,168
153,444
55,037
Other
Payments during the year
At 31 December
(17,043)
(2,155)
322,740
186,339
(a)
Movement in Present Value of Long Service Award Benefits Obligation
In thousands of naira
At 1 January
(c)
Actuarial (Gains) and Losses Recognised in Other Comprehensive Income for Gratuity and Other
Post Employment Benefit Obligations
2020
2019
2020
2019
In thousands of naira
696,310
477,010
Included in profit or loss
Current service costs
82,461
57,666
Interest cost
93,664
73,251
Past service cost Amendment
14,752
Actuarial loss
232,527
114,498
408,652
260,167
Other
Benefit paid during the year
(59,875)
(40,867)
At 31 December
1,045,087
696,310
Cumulative amount at 1 January
Loss/(gain) recognised during the year
Cumulative amount at 31 December
387,898
105,866
368,730
19,168
493,764
387,898
FrieslandCampina WAMCO Nigeria PLC
FrieslandCampina WAMCO Nigeria PLC
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