Total included in Other Comprehensive Income ( 37,791)
( 40,816)
Results under IAS 19 can change significantly depending on market conditions. The pension plans defined benefit obligations
are discounted using a rate linked to yields on Swiss corporate bonds and assets are measured at market value. Accordingly,
changing markets can lead to volatility in both defined benefit obligations and the fair value of plan assets, and therefore lead
to volatility in the funded status of the Pension Plans. Similarly, whilst neither the Retirees’ health insurance scheme nor the
non-Swiss post-employment benefit arrangements have assets, changing market conditions can lead to volatility in the
defined benefit obligations.
In 2022, the pension plans’ assets returned less than assumed leading to a loss on assets of CHF 38,473k (2021: gain of
CHF 32,462k). The discount rate was increased from 0.3% in 2021 to 2.15% in 2022, resulting in a defined benefit obligation
gain of CHF 85,238k (2021: CHF 13,732k). Changes to other financial assumptions generated defined benefit obligation
losses of CHF 9,232k (2021: CHF 899k), which means that the total liability actuarial gain on financial assumptions is CHF
76,006k (2021: CHF 12,833k).
In these consolidated financial statements, the risk of the above-mentioned volatility is shared across the restricted and
unrestricted reserves in proportion to the IFRC’s contributions to the pension plan.
Sensitivity analyses have been carried out to illustrate how the results change when the main assumptions change. The results
of these analyses are included in the disclosure details below.
Financials
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INTERNATIONAL FEDERATION OF RED CROSS AND RED CRESCENT SOCIETIES, GENEVA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
