PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
41
20. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
a. Retirement Benefit continued The actuarial valuation was determined using the “Projected Unit Credit” method which considered
the following assumptions: Company
Subsidiaries Discount rate 11 in 2005 and 10 in 2004
11 in 2005 and 10 in 2004 Wage and salary increase
9 in 2005 and 2004 9 in 2005 and 2004
Retirement age 55 years
55 years Average employee turnover
1 for employees with ages from 2 - 5 for employees with
20 years old up to 54 years old ages from 20 years old,
decreasing linearly to 0 at age 45
Table of mortality Commissioners Standard
Commissioners Standard Ordinary 1980 CSO ’80
Ordinary 1980 CSO ’80 Disability
10 of the mortality rate 10 at the mortality rate
The provisions for employee benefits recognized in the consolidated statements of income consisted of the following:
2005 2004
Current service costs 9,922,838,000
9,040,141,000 Interest costs
14,727,976,000 12,640,194,000
Actuarial loss recognized 119,321,000
- Amortization of past service costs and actuarial gains
7,955,552,975 7,145,843,131
Net employee benefits expense 32,725,687,975
28,826,178,131
A reconciliation of estimated liability for employee benefits is as follows:
2005 2004
Present value of defined benefit obligation 156,375,954,000
152,363,252,000 Unamortized balance of the non-vested past service
costs 94,770,637,000
102,652,854,000 Actuarial loss
13,737,803,188 16,062,882,277
Liability recognized in the consolidated balance sheets 47,867,513,812
33,647,515,723
Movements in the estimated liability for employee benefits are as follows:
2005 2004
Balance at beginning of year 33,647,515,723
17,740,633,181 Provision during the year
32,725,687,975 28,826,178,131
Payments during the year 18,505,689,886
12,919,295,589
Balance at end of year recorded as part of
“Long-term Liabilities - Others” account in the
consolidated balance sheets 47,867,513,812
33,647,515,723
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
42
20. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
