29 6.7 staf r tir m nt b n fit 6.7.1 d fin d b n fit

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Unformatted text preview: 29 6.7 Staf r tir m nt b n fit 6.7.1 D fin d b n fit plan The Ban operates a gratuity scheme or al o its permanent employes which is expected to be unded subsequently. The scheme entitles the members to a lump sum payment at the time o retirement, resignation, death or disability. The contribution to the scheme is made on the basis o actuarial recomendations. Actuarial valuation is caried out at each year end using the Projected Unit Credit Method. Actuarial gains and loses are recognised as income or expense over the average remaining use ul lives o the employes, i the cumulative recognised actuarial gains or loses or the Scheme at the end o the previous reporting period exced 1 percent o the higher o de ined bene it obligation and the air value o the plan asets. 6.7.2 D fin d contribution plan The Ban operates a contributory provident und scheme or al o its permanent employes. The employer and employe both contribute 1 percent o the basic salaries to the unded scheme every month. 6.8 For ign cur ncy Monetary asets and liabilities in oreign curencies are revalued daily into Pa Rupes ( unctional curency) using spot exchange rates published by the State Ban o Pa istan. Forward oreign exchange contracts are revalued at orward rates aplicable to their respective remaining maturities. Exchange gains and loses are ta en to pro it and los acount. 6.9 Of ting Financial asets and inancial liabilities are only o set and the net amount is reported in the balance shet when there is a legaly en orceable right to set-o the recognised amounts and the Ban intends to either setle on a net basis, or to realise the aset and setle the liability simultaneously. Income and expense items o such asets and liabilities are also o set and the net amount is reported in the pro it and los acount. 6.10 R lat d party tran action The Ban enters into transactions with major shareholders, directors, senior management and their related concerns in the ordinary course o busines at prices and rates o return determined using aproved methods. 6.11 Trad dat acounting Al "regular way" purchases and sales o quoted equity securities are recognised on the "trade date", i.e., the date that the Ban comits to purchase / sel the security. Regular way purchases or sales o quoted equity securities require delivery within thre days a ter the transaction date as per stoc exchange regulations. 3 6.12 Impairm nt and uncol ctability of financial a t oth r than inv tm nt and financing An asesment is made at each balance shet date to determine whether there is objective evidence that a inancial aset or group o inancial asets may be impaired. I such evidence exists, the estimated recoverable amount o that aset is determined and any impairment los based on the net present value o uture anticipated cash lows is recognised or the di erences betwen the recoverable amount and carying amount....
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29 6.7 Staf r tir m nt b n fit 6.7.1 D fin d b n fit plan...

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