Limpopo Gambling Board Annual Report

LIMPOPO GAMBLING BOARD Annual Financial Statements for the year ended 31 March 2022 Notes to the Annual Financial Statements

2022

2021

8. Employee benefit Obligation (continued) Net expense recognised in the statement of financial performance Current service cost

31 280 24 028

28 909 23 282

Interest cost

Actuarial (gains) losses

656

930

55 964

53 121

Actuarial gains/ losses Actuarial (gains) losses – Obligation

656

930

Key assumptions used For the purpose of performing the calculation on the employee benefit, the Nominal Bond Curve, as compiled by the Johannesburg Stock Exchange of South Africa and obtained from Inet Bridge, at the duration of the liabilities of 6 years. This converts into an effective yield of 8.20% . In terms of the accounting standards historical yields are less important and we consequently consider it appropriate to use the discount rate 8.20% per annum. We have assumed that staff will retire at age 60. We have assumed no future increases in the long service awards. Assumptions used at the reporting date: Discount rates used 8,20 % 8,20 % Average age 48 48 We recalculated the liability to show the effect of: the discount rate assumption on the defined benefit obligation by adding and subtracting 1% to the discount rate; the long service award increase rate assumption on the defined benefit obligation by adding and subtracting 1% to the long service award increase rate; and the age rating assumption by adding an subtracting 1 year from the age rating. Other assumptions Assumed long service cost trends rates have a significant effect on the amounts recognised in surplus or deficit. A one percentage point change in assumed long service cost trends rates would have the following effects:

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One percentage point increase

One percentage point decrease

Effect on defined benefit obligation

304 143

298 120

Amounts for the current and previous four years are as follows:

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2022

2021

2020

2019

Defined benefit obligation

301 132

277 668

284 547

264 557

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39

149