A contributions by employees to the new plan are

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ny to the plan amounted to U.S.$ 1,211, U.S.$ 1,266 and U.S.$ 1,183 in 1998, 1999 and 2000, respectively, and represented the annual pension expense of the Company for this plan. After the implementation of Plan 2, and its subsequent substitution by Plan ARUS, few participants remained in the defined-benefit plan (Plan 1), and it no longer represents a significant liability for the Fund. Accordingly, the Company’s management considers that it is no longer necessary to disclose the plan’s funded status and other information required by SFAS 132 – “Employers’ Disclosures about Pensions and Other Posretirement Benefits”. 15 Employee benefits In addition to the pension plans, the Company makes monthly contributions, based on total payroll, to government pension, social security and severance indemnity plans and such payments are expensed as incurred. Also, certain severance payments are due on dismissal of employees, principally notice of one month's salary and a severance payment calculated at 40% of the accumulated contributions made to the government severance indemnity plan on behalf of the employee. Based on current operating pl...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online