Financial statements

NOTE 13



PROVISIONS FOR RISKS AND EXPENSES

The movements under this heading in 2017 were as follows:

(Amount in euros) Balance at 01/01/2017 Allocations 31/12/2017 Transfers 31/12/2017 Application 31/12/2017 Balance at 31/12/2017
Pension commitments to retired personnel 4.386.869 -380.737 4.006.132
TOTAL 4.386.869 0 -380.737 0 4.006.132

The provision of 4,006,132 euros recorded at 31 December 2017 corresponds to a non-current provision for the pensions payable to staff who have retired or taken early retirement, in line with the defined benefits model based on the pension regulations established by the General Council on 29 July 1981, the Government Decree on early retirement of 5 June 1996 and the internal Regulation approved by the Board of Directors on 12 March 2009.

The amounts are based on an actuarial assessment of the specific present and future commitments at 31 December 2015. The actuarial valuation is based on the PERM/F2000 P mortality and disability tables. The financial/actuarial valuation is performed using the Projected Unit Credit method based on generally accepted actuarial principles.

The amount of 380,737 euros was transferred to current liabilities in 2017. The provision for current pension payments to retired staff is 362,463 euros.

100% of the Company’s current permanent staff are signed up to the defined contributions model approved by the Board of Directors of Servei de Telecomunicacions d’Andorra on 20 November 2014 (see note 14).