probable that future taxable profit will be available against which the tax losses can be utilised. Deferred tax liabilities and assets are not discounted. 15. Employee benefits 15.1 Retirement obligations The Group provides for retirement benefits of employees by means of a defined contribution provident fund. The assets are held in a separate umbrella fund controlled by trustees appointed by the administrator. 15.2 Post-retirement medical obligations The Group provides for the unfunded post-retirement healthcare benefits of a small number of retirees, their spouses and dependents. For past service of employees, the Group recognises and provides for the actuarially determined present value of post-retirement medical aid employer contributions on an accrual basis using interest rates with reference to the market yield of government bonds at reporting date. An independent actuary performs valuations of the defined benefit obligation, annually at reporting date, using the projected unit credit method to determine the present value of its post-retirement medical obligations and related current and past service costs. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited in the Statement of Profit or Loss and Other Comprehensive Income in the period in which they arise. 15.3 Termination benefits Termination benefits are recognised as an expense in the Statement of Profit or Loss and Other Comprehensive Income and a liability in the Statement of Financial Position when the Group has a present obligation relating to termination. 15.4 Leave pay provision The Group recognises employees’ rights to annual leave entitlement in respect of past service accumulated at reporting date. 15.5 Management bonuses Management bonuses are recognised as an expense in staff costs as incurred when it is probable that the economic benefits will be paid and the amount can be reliably measured. Management bonuses arise as a result of a contractual obligation, but the amount of the bonus is at the discretion of the employer. 15.6 Retention schemes Long-term incentive and retention schemes are in place for qualifying employees. The entitlement to these benefits is based on the employee remaining in service of the Group for a period of three to five years, depending on the scheme. The growth of the benefit under the executive retention schemes are based on the five-year rolling historical average return of the PPS Profit-Share Account. Other long-term employee benefits include employee benefits payable more than 12 months after the related service is rendered. These provisions are measured at present value, using actuarial assumptions. The discount rate is the yield at reporting date of AA-rated government bonds that have maturity dates approximating the terms of the obligations. The calculation is performed using the projected unit credit method. Any actuarial 121 Group Accounting Policies
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