Vetoquinol Universal Registration Document 2019

Vetoquinol  Universal Registration Document 2019  Financial report   93 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 6 6.5.30.2 Retirement bonuses A retirement bonus system has been established for the Vetoquinol sites in France, Poland, Austria, Italy and Germany. In France, employees qualify for a reti- rement bonus (“Indemnités de Fin de Carrière”) under the national collective bargaining agreement for produc- tion and sale of pharmaceutical, parapharmaceutical and veterinary products. The sensitivity testing based on a deviation of +/- 0.25% in the discount rate did not result in any material (+/- €214,000) adjustments to the commitment. • Changes in the corresponding liability are as follows: €000 Dec 31, 2019 Dec 31, 2018 Carrying amount at January 1 6,295 6,602 Expenses recognized in the income statement 710 615 Actuarial gains and losses recognized in other comprehensive income 780 (430) Contributions paid (219) (262) Reclassifications (147) (173) Benefits paid from the fund (213) (51) Exchange differences 3 (6) New liabilities arising from acquisitions - - Carrying amount at December 31 7,209 6,295 • The following amounts were posted to the income statement for the year: €000 Dec 31, 2019 Dec 31, 2018 Cost of services rendered during the year 482 543 Financial cost 161 56 Cost of past services - - Actuarial gains and losses recognized in the income statement 67 16 TOTAL 710 615 • The main actuarial assumptions applied in France are as follows: Dec 31, 2019 Dec 31, 2018 Discount rate 0.70% 1.60% Salary increase rate 2.90% 2.30% Social security contribution rate 45.4% 47% Mortality table TF-TH 2000-2002 Staff turnover Based on age range