Consolidated financial statement of JSW S.A. Capital Group for 2012

19. Employee benefit liabilities

  31 Dec 2012 31 Dec 2011
Employee benefit liabilities captured in the consolidated statement of financial position on account of:    
– retirement and disability severance pays 209.1 175
– jubilee awards 315.5 246.7
– adjustment disability benefits 224.1 186.4
– in-kind allowance of coal for pensioners and recipients of disability benefits 1,360.7 1,202.5
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits 164.1 147.2
– other employee benefits 80.9 56.2
Total 2,354.4 2,014.0
of which:    
 – long-term part 2,084.7 1,774.3
 – short-term part 269.7 239.7

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  2012 2011
restated
Employee benefit costs captured in pre-tax profit on account of:    
– retirement and disability severance pays 17.7 15.9
– jubilee awards 120.6 67.7
– adjustment disability benefits 9.6 9
– in-kind allowance of coal for pensioners and recipients of disability benefits 82 78.3
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits 12.1 15.7
– other employee benefits 27.5 17.8
Total 269.5 204.4

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  2012 2011
restated
Employee benefit costs captured in other comprehensive income on account of:    
– retirement and disability severance pays 35.6 20
– adjustment disability benefits 47.8 27.1
– in-kind allowance of coal for pensioners and recipients of disability benefits 138.3 (62.6)
– write-offs for the Company Social Benefit Fund for pensioners and recipients of disability benefits 11.4 (8.6)
– other employee benefits 0.9 -
Total 234 (24.1)

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Movement in employee benefit liabilities

  2012 2011
restated
As at 1 January 2,014.0 1,945.3
Current headcount cost 73.8 69.4
Interest cost 109.6 93.7
Actuarial loss/(profit) captured in pre-tax profit 86.1 41.3
Actuarial loss /(profit) captured in other comprehensive income 234 (24.1)
Total captured in comprehensive income 503.5 180.3
Benefits paid out (163.1) (156.0)
Acquisition of subsidiaries - 44.4
As at 31 December 2,354.4 2,014.0

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Total amount of employee benefit costs captured in the consolidated statement of comprehensive income:

  2012 2011
restated
Cost of products, materials and merchandise sold 126.9 84.3
Cost of sales 0.8 (0.1)
Administrative costs 32.2 26.5
Financial costs 109.6 93.7
Total captured in pre-tax profit 269.5 204.4
Amount captured in other comprehensive income 234 (24.1)
Total captured in comprehensive income 503.5 180.3

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Key actuarial assumptions adopted for days ending the reporting periods:

  2012 2011
Discount rate 4.5% 5.5%-5.75%
Assumed average annual increase in the basis for calculating the provision for retirement and disability severance pays, jubilee awards, adjustment disability benefits 2.6% 2.3%-2.6%
Assumed average annual increase in the basis for calculating the provision for in-kind allowance of coal 2.7% 2.7%
Assumed average annual increase in the basis for calculating the provision for write-offs for the Company Social Benefit Fund 4.5% 4.6%
Weighted average employee mobility ratio 2.46% 2.21%

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Assumptions regarding future mortality rates and probability of the employee becoming a disability benefit recipient were estimated based on the statistical data from Polish survival tables for men and women published by the Central Statistical Office, as at the measurement date.