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Financial statements 2011
Depreciation is calculated on a straight-line basis over the
following estimated useful lives:
Fixtures and Fittings
3 to 10 years
Office Equipment
3 to 5 years
Computer Equipment and Vehicles
3 years
2.6.3 Investment property
Investment property is property held to earn rentals or for
capital appreciation or both. Investment property is stated
at cost less accumulated depreciation and impairment
losses and is reviewed for signs of impairment at the date
of the statement of financial position.
Depreciation is calculated on a straight-line basis over the
following estimated useful life:
Buildings
30 years
2.6.4 Impairment of non-financial assets
EIF assesses at each reporting date the carrying amounts
of the non-financial assets to determine whether there is
any indication of impairment. If any such indication exists,
then the asset’s recoverable amount is estimated. If the car-
rying amount exceeds the estimated recoverable amount,
impairment losses are recognised in the profit or loss.
2.7
Employee benefits
Actuarial valuations involve making assumptions about
discount rates, expected rates of return of assets, future
salary increases, mortality rates and future pension in-
creases. All assumptions are reviewed at each reporting
date. Due to the long- term nature of these plans, such
estimates are subject to significant uncertainty.
2.7.1 Post employment benefits
Pension fund
EIF operates an unfunded pension plan of the defined
benefit type, providing retirement benefits based on final
salary. The cost of providing this benefit is calculated by
the actuary using the projected unit credit cost method.
Actuarial gains and losses are amortised over the aver-
age remaining working life of the population through the
profit or loss.
The Fund’s def ined benef i t scheme was ini t iated in
March 2003 to replace the previous defined contribu-
tion scheme. The scheme is funded by contributions from
staff and the Fund. These funds are transferred to the EIB
for management with the EIB’s own assets and appear
on the Fund’s statement of financial position as an asset
under the heading “Other assets”.
The charge for the year, actuarial gains and losses, and
the total defined benefit obligation are calculated annu-
ally by qualified external actuaries.
Optional Supplementary provident scheme
The optional supplementary provident scheme is a de-
fined contribution pension scheme, funded by contribu-
tions from staf f. It is accounted for on the basis of the
contributions from staff and the corresponding liability is
recorded in “Other liabilities”.
Health insurance scheme
The Fund has subscribed to a health insurance scheme
with an insurance company for the benefit of staf f at
retirement age, financed by contributions from the Fund
and its employees. The entitlement is of a defined ben-
efit type and is based on the employee remaining in
service up to retirement age and the completion of a
minimum service period. The expected costs of this ben-
efit are accrued over the period of employment, using a
methodology similar to that for defined benefit pension
plans. Health insurance liabilities are determined based
on actuarial calculations calculated annually by quali -
fied external actuaries.
2.7.2 Short-term employee benefits
Employee entitlements to short-term benefits are recognised
when they accrue to employees. A provision is made for
the estimated liability for any outstanding short-term benefit