(c) Amounts in the Consolidated Statement of Comprehensive Income The IFRC recognises all actuarial remeasurement gains and losses immediately in Other Comprehensive Income. Expenses
related to defined benefits are included as Employee benefits operating expenditure.
The amounts recognised in the Consolidated Statement of Comprehensive Income are as follows:
2022 2021 CHF 000s CHF 000s Service cost
20,565
19,508
Net interest on the net defined benefit liability
30
24
Administration expenses
643
650
Total included in employee benefits expenditure 21,238
20,182
(d) Amounts in Other Comprehensive Income The amounts recognised in Other Comprehensive Income that will not be subsequently reclassified to income or expenditure,
are as follows:
2022 2021 CHF 000s CHF 000s Defined benefit obligation (gains) due to changes in demographic assumptions
( 326)
( 12,590)
Defined benefit obligation (gains) due to changes in financial assumptions
( 77,585)
( 13,198)
Defined benefit obligation losses due to experience, net
1,863
17,434
Return on pension plan assets excluding amounts included in interest income
38,473
( 32,462)
Exchange rate (loss)
( 216)
-
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.
