Page 55 - Bouvet årsrapport ENG 2010 ePub

Bouvet annual report 2010 55

From 2010 an additional share scheme for the management have been established. Te share sheme consist of annual ofers where each member can subscribe for shares one time each calendar year. Te share scheme is approved for one year at a time.

Te share scheme gives members of the management the opportunity to subscribe for shares at a value of NOK 22 500 per year at market value without any subsidising from Bouvet. Bouvet will give a corresponding number of shares free of charge if the manager keeps the shares for two years and is still employed.

In 2010 a total of 22 188 shares were sold at a rate of NOK 58,00. A total of 58 employees have joined the scheme.

Te share scheme is treated in accordance with IFRS 2. Te fair value of the scheme is calculated at the grant date and expensed over the vesting period of 2 years. TNOK 2 058 in compensation costs have been charged in 2010 (in 2009 TNOK 1 491). Remaining estimated compensation costs at 31 December 2010 for the years 2011 and 2012 are TNOK 4 442.

Note 19: Pensions

Te Group is required to have an occupational pension scheme in accordance with the Norwegian law on required occupational pension (“lov om obligatorisk tjenestepensjon”). Te company’s pension schemes satisfy the requirements of this law. Te Group’s pension schemes comprise a closed defned beneft scheme and a contribution scheme. At the end of the year, there were 48 participants in the beneft plan and 580 in the contribution plan.

Defined benefit pension

For accounting purposes it is assumed that the pension benefts are accrued linearly. Parts of unrealised gains and losses resulting from changes in actuarial assumptions that exceed a defned corridor are distributed over the estimated remaining average vesting period. Te corridor is defned as 10% of the more signifcant of the gross pension liability and the gross plan asset. Te pension obligation is calculated in December in the accounting year as an estimate of the situation as per 31 December. Management is of the opinion that changes in assumptions and data in the period to year-end will not have any signifcant efect on the fgures.

In the life insurance company, the risk for death and disability is divided between all the customers, and this is therefore the relevant indicator for future disability and life expectancy rate. Te risk tables for death and disability are based on commonly used tables in Norway updated with historic data from the population of the life insurance company. Tese data imply an adjustment of available tables with respect to an increase in the life expectancy span and an increase in the expected disability rate. Below is an extract of the tables that have been applied. Te tables show the expected life span and the probability of disability and death within one year for various age groups.

Expected life span (K2005)

Age Man Woman

20 61 64 40 41 45 60 22 26 80 8 10

Probability of death (K2005)

Age Man-n Woman-n Man-r Woman-r

20 0,02 % 0,02 % 0,02 % 0,02 % 40 0,09 % 0,05 % 0,08 % 0,05 % 60 0,75 % 0,41 % 0,66 % 0,38 % 80 6,69 % 4,31 % 6,07 % 4,07 %

n) is the mortality rate applied for death risk for insured persons in spouse pensions r) is the mortality rate as the basis for the probability to survive