What is the reason for the significant increase in pension liabilities?
The significant increase in pension liabilities is due to the different approach to pensions taken by IFRS. The following changes were key to the increase in pension liabilities in the IFRS opening balance sheet at October 01, 2004: • Whereas under US GAAP the Group measured its pension plans at June 30 (early measurement), under IFRS the measurement date must coincide with the company’s balance sheet date. At October 01, 2004 the discount rate was lower than the one applied under US GAAP at the early measurement date of June 30, 2004. • All actuarial gains and losses accumulated up to the date of transition from US GAAP to IFRS, October 01, 2004, were recognized directly in equity when drawing up the opening balance sheet. Similarly, all actuarial gains and losses after October 01 are recognized directly in equity. These two factors resulted in an increase in accrued pension and similar obligations. In this connection it should also be mentioned that transparency and balance sheet cla
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