Inhoudsopgave Voorwoord Bestuursverslag Corporate governance
Consolidated Financial Statements Company Financial Statements Pillar 3
Pension obligations
The obligation under defined benefit pension plans is the
present value of the defined benefit pension obligation at the
end of the reporting period reduced by the fair value of the
fund investments. The defined benefit obligation is calculated
annually by independent actuaries based on the projected
unit credit method. The present value of the defined benefit
obligation is determined as the estimated future outflow of
cash funds based on the interest rates of high-quality corporate
bonds with terms that approximate those of the corresponding
obligation.The majority of pension plans are career-average
plans. The costs of these plans (being the net pension charge
for the period after deducting employee contributions and
interest) are included under'Staff costs'. Net interest expense/
income is determined by applying the discount rate at the
beginning of the reporting period to the asset or liability of the
defined benefit pension plan.
Actuarial gains and losses arising from events and/or changes
in actuarial assumptions are recognised in the statement of
comprehensive income.
Defined contribution plans
Under defined contribution plans, contributions are paid into
publicly or privately managed pension insurance plans on
a compulsory, contractual or voluntary basis. These regular
contributions are recognised as expense in the year in which
they are due and they are included under 'Staff costs'.
Other post-employment obligations
Some of Rabobank's business units provide other post-
employment benefits.To become eligible for such benefits, the
usual requirement is that the employee remains in service until
retirement and has been with the company for a minimum
number of years.The expected costs of these benefits are
accrued during the years of service, based on a system similar
to that for defined benefit pension plans. The obligations are
calculated annually by independent actuaries.
Variable remuneration
Variable remuneration payable unconditionally and in cash
is recognised in the year in which the employee renders the
service. Conditional cash remuneration is included, on a straight
line basis, in staff costs in the statement of income over the
period of the year in which the employee's services are received
and the remaining three years of the vesting period (i.e.
over four years). The liability is recognised in 'Other liabilities'.
The accounting treatment of payments based on equity
instruments is disclosed in Paragraph 2.23.
2.23 Equity instrument-based payments
For certain identified staff, remuneration for services
rendered is settled in the form of cash payments based on
equity instruments that are similar to, and have the same
characteristics as, Rabobank Certificates. The costs of the
services received are based on the fair value of the equity
instruments on the award date and are restated annually to
fair value at the time. The costs related to the award of equity
instruments during the period of the employee's contract are
included in staff costs in the statement of income over the
period of the year of award and the remaining three years of the
vesting period of the equity instruments (i.e. over four years).
The liability is recognised in other liabilities.
2.24 Tax
Current tax receivables and payables are offset where there is
a legally enforceable right to offset and where simultaneous
treatment or settlement is intended. Deferred tax assets and
liabilities are offset where there is a legally enforceable right to
offset and where they relate to the same tax authority and arise
within the same taxable entity.
Provisions are made, using the liability method, for deferred
tax liabilities arising on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for
financial reporting purposes.These temporary differences arise
primarily on depreciation of tangible fixed assets, revaluation
of certain financial assets and liabilities (including derivatives),
provisions for pensions and other post-employment benefits,
provisions for loan losses and other impairment, tax losses
and fair value adjustments to net assets acquired in business
combinations. Deferred income tax assets and liabilities
are measured at the tax rates that have been enacted or
substantively enacted as at the reporting date.
Deferred tax assets are recognised to the extent that it is
probable that future taxable profits will be available against
which the losses can be utilised.
Provisions are made in respect of taxable temporary differences
associated with investments in subsidiaries, associates and
interests in joint ventures, unless the timing of the reversal of
the temporary differences is within Rabobank's control and it is
probable that the temporary differences will not reverse in the
foreseeable future.
Taxes on profit are calculated in accordance with the tax
legislation ofthe relevant jurisdictions in which Rabobank
operates and are recognised as an expense in the period in
which the profit is realised. The tax effects of loss carryforwards
190 Rabobank Jaarverslag 2016