20. Other Liabilities

In mln of Russian Roubles Note 2011 2010
Other financial liabilities      
Securities sold, not yet purchased   67,492 -
Payable for acquisition of Troika Dialog Group Ltd. 37 36,133 -
Payables on plastic card settlements   45,777 25,425
Derivative financial instruments   26,665 1,553
Trade payables   13,097 9,318
Settlements on operations with securities   10,497 -
Funds in settlement   10,091 5,071
Deposit insurance system fees payable   5,184 4,476
Deferred commissions received on guarantees issued   1,373 1,222
Other   6,476 2,109
Total other financial liabilities   222,785 49,174
Other non-financial liabilities      
Accrued employee benefit costs   17,898 15,709
Taxes payable other than on income   9,508 8,573
Liabilities of the disposal group   8,459 -
Advances received   1,801 5,648
Income tax payable   1,492 7,761
Deferred gains on initial recognition of financial instruments   819 4,108
Other   2,396 1,200
Total other non-financial liabilities   42,373 42,999
Total other liabilities   265,158 92,173

In December 2011 the Group signed a preliminary agreement on a stage-by-stage disposal of 100% share of OJSC Holding company GVSU Center in a period of less than twelve months after the reporting date as a result of which liabilities of GVSU were classified as liabilities of the disposal group as at 31 December 2011. Refer to Notes 15 and 39.

As at 31 December 2011 and 31 December 2010 the movements in deferred gains on initial recognition of financial instruments were as follows:

In mln of Russian Roubles Deferred gains on initial recognition of financial instruments
Carrying amount at 1 January 2010 3,863
Additions 1,104
Amortisation transferred to Income statement (859)
Carrying amount at 31 December 2010 4,108
Additions 143
Gains transferred to Income statement upon disposal (2,862)
Amortisation transferred to Income statement (570)
Carrying amount at 31 December 2011 819

Defined benefit plans of the Group. The Group applies IAS 19 Employee Benefits for accounting for its pension liabilities. As at 31 December 2011 the Group operates two benefit plans — benefit plan with defined pension payments and benefit plan with defined pension contributions. The Group takes direct liability to provide pension payments and contributions defined according to the Group’s pension programmes.

All the employees of the Bank (including retired) who are entitled to state pension payments or have five years or less to retirement as at 1 January 2011 participate in the benefit plan with defined pension payments. The payment calculations are based on the employee staying with the Bank until retirement. As at 31 December 2011 the Bank operates 18 separate pension programmes with defined payments, for Central Head Office and each Regional Head Office. The programmes covered 93 058 participants (2010: 296 315 participants).

All the employees of the Bank with three years of continuous employment with the Bank except the Management Board members, those employees who have five years or less to retirement as at 1 January 2011 or those who are already entitled to state pension payments participate in the benefit plan with defined pension contributions (which are calculated as a percent of each individuals wages). According to the programme employees whose continuous employment with the Bank reaches seven years become unconditionally entitled to these contributions upon retirement. The programme covers 169 982 participants.

As at 31 December 2011 pension liabilities of the Group comprised RR 4 650 mln (2010: RR 7 842 mln). Pension expenses for 2011 amounted to RR 685 mln (2010: RR 1 898 mln) and were included in staff costs within operating expenses.

The estimated fair value of other financial liabilities is disclosed in Note 34. Currency and maturity analyses of other liabilities are disclosed in Note 31.

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