Limpopo Gambling Board Final

LIMPOPO GAMBLING BOARD Financial Statements for the year ended 31 March 2023 8. Employee benefit Obligation (continued) Changes in the fair value of plan assets are as follows:

There has been a change in estimate regarding long service award. As at 31 March 2022, the closing balance was estimated at R301 132, with the actual balance as 1 April report in the actuarial report at R254 258. The change in estimate has been accounted for prospectively in the financial year under review.

Key assumptions used

For the purpose of performing the calculation on the employee benefit, the average nominal yield curve, as compiled by the Johannesburg Stock Exchange of South Africa and obtained from IRESS data services, at the duration of the liabilities of 6 years.This converts into an effective yield of 9.35% . In terms of the accounting standards historical yields are less important and we consequently consider it appropriate to use the discount rate 9.35% 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:

2023

2022

Discount rates used

9,00 %

8,20 %

Average age

45

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:

One percentage point increase

One percentage point decrease

Effect on defined benefit obligation

237 100

267 692

Amounts for the current and previous four years are as follows: 2023 2022

2021

2020

Defined benefit obligation

270 396

301 132

277 668

284 547

LIMPOPO GAMBLING BOARD

164