Axactor Annual Report 2016

Note 24 Pension liability Some of the Group companies operates unfunded defined benefit pension plans. The plans are final salary pension plans, which provide benefits to employees in the form of a guaranteed level of pension payable. The pension plan is funded through the company's operations, which means that the company meets the benefits payment obligation as It falls due. The amounts recognised in the financial position are determined as follows: SEK thousand 2016 2015 Fair value of plan assets 1,626 - Present value of unfunded obligations -17,507 - Pension liabilities 15,881 - The movement in the defined benifit liability over the year is as follows: Present value of obligation SEK thousand 2016 2015 At acquisition 18,235 - Acquisition of Business - - Current service cost 909 - Local tax - - Interest expense/(income) 77 - 19,220 - Remeasurements: (Gain)/Loss from change in financial assumptions -1,454 - -1,454 - Payments from plans: Benefits payments -258 - Settlements - - At 31 December 2016 17,507 - Net expense recognized in the statement of profit and loss 985 - Net expense recognized over comprehensive Income statement 1,209 - The significant actuarial assumptions were as follows: Italy 2016 Discount rate 1.31 % Inflation 1.50 % Salary growth rate 1.00 % Pension growth rate 2.63 % Germany 2016 Discount rate 1.90 % Inflation 0.00 % Salary growth rate 0.00 % Pension growth rate 2.00 % Axactor AB | Annual report 2016 56