NOTES – KIRKBI GROUP PART 3
ANNUAL REPORT 2017 | 75 |
9.5. PENSION OBLIGATIONS
Defined contribution plans:
In defined contribution plans, the KIRKBI Group
recognises in the income statement the premium
payments (e.g. a fixed amount or a fixed percentage
of the salary) to the independent insurance companies
responsible for the pension obligations. Once the
pension contributions for defined contribution plans
have been paid, the KIRKBI Group has no further
pension obligations towards current or past employees.
The pension plans in the Danish companies and
some of the non-Danish companies are defined
contribution plans. In the KIRKBI Group, DKK 216
million (DKK 239 million in 2016) has been recognised
in the income statement as costs relating to defined
9.6. RELATED PARTY TRANSACTIONS
KIRKBI A/S’ related parties comprise Kjeld Kirk Kristiansen,
Sofie Kirk Kristiansen, Thomas Kirk Kristiansen, Agnete Kirk
Thinggaard and the Board of Directors and the Exe-
cutive Management of KIRKBI A/S. Related parties also
comprise subsidiaries and associates. Related parties
further comprise companies where the mentioned
shareholders have significant influence.
Kjeld Kirk Kristiansen, Sofie Kirk Kristiansen, Thomas
Kirk Kristiansen and Agnete Kirk Thinggaard have as
shareholders significant influence in KIRKBI A/S.
In the financial year, a limited number of transactions
related to services took place between the owners of
KIRKBI A/S and the KIRKBI Group. These services were
paid on normal market terms and the total fee paid to
KIRKBI A/S amounts to DKK 16 million (2016 DKK 18 million).
9.7. POST BALANCE SHEET EVENTS
From the period from 31 December 2017 and until
adoption at the annual report, no events have
Defined benefit plans:
In defined benefit plans, the KIRKBI Group is obliged
to pay a certain pension benefit. The defined benefit
plans include employees in Germany and in the UK.
In the KIRKBI Group, a net obligation of DKK 184 million
(DKK 198 million in 2016) has been recognised relating
to the KIRKBI Group’s obligations towards current or
past employees concerning defined benefit plans. The
obligation is calculated after deduction of the plan
assets. In the KIRKBI Group, DKK 1 million (DKK 105 million
in 2016) was recognised in the income statement and
DKK 3 million (DKK 9 million in 2016) has been recognised
in other comprehensive income. All defined benefit
plans relate to the LEGO Group and no new employees
will be included in the defined benefit plans.
Interests paid to owners of KIRKBI A/S amounted in the
financial year to DKK 23 million (DKK 28 million in 2016).
Transactions related to sales of products and services
between associates and the KIRKBI Group amounted to
DKK 685 million (DKK 610 million in 2016), which was paid
on normal market terms.
There were no transactions with the Board of Directors
or the Executive Management besides transactions
related to the employment except for the circumstances
For information about remuneration to the Board of
Directors and the Executive Management, see note 9.1.
Loans, receivables and commitments related to associates
are specified in the KIRKBI Group’s balance sheet.
occurred that could have significant effect on the
annual report for 2017.
Costs regarding defined contribution plans are
recognised in the income statement in the periods in
which the related employee services are delivered.
Net obligations in respect of defined benefit
pension plans are calculated separately for each
plan by estimating the amount of future benefits
that employees have earned in return for their
service in the current and prior periods; that benefit
is discounted to determine its present value, and
the fair value of any plan assets is deducted.
Discount rates are based on the market yield of high
quality corporate bonds in the country concerned
approximating to the terms of the KIRKBI Group’s
pension obligations. The calculations are performed
by a qualified actuary using the Projected Unit Credit
Method. When the benefits of a plan are increased,
the portion of the increased benefit relating to past
service by employees is recognised as an expense in
the income statement over the vesting period. To the
extent that the benefits are vested, the expense is
recognised in the income statement immediately.
Actual gains and losses are recognised in other com-
prehensive income in the period in which they occur.
Net pension assets are recognised to the extent
that the KIRKBI Group is able to derive future
economic benefits in the way of refunds from the
plan or reductions of future contributions.