PERSONNEL COSTS AND EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 2014

PERSONNEL COSTS AND EMPLOYEE BENEFIT PLANS [Text Block]

14.   PERSONNEL COSTS AND EMPLOYEE BENEFIT PLANS

Defined benefit plan

The Company maintains Swiss defined benefit plans for eight of its employees. These plans are part of independent collective funds providing pensions combined with life and disability insurance. The assets of the funded plans are held independently of the Company’s assets in a legally distinct and independent collective trust fund which serves various unrelated employers. The funds’ benefit obligations are fully reinsured by AXA Winterthur Insurance Company. The plans are valued by independent actuaries using the projected unit credit method. The liabilities correspond to the projected benefit obligations of which the discounted net present value is calculated based on years of employment, expected salary increases, and pension adjustments.

	Three months ended				Six months ended
Pension expense	Jun 30, 2014		Jun 30, 2013		Jun 30, 2014		Jun 30, 2013
Net service cost	8,212		10,164		12,318		20,328
Interest cost	10,809		4,802		16,213		9,604
Expected return on assets	(8,834	)	(3,853	)	(13,250	)	(7,706	)
Amortization of loss	11,625		4,931		17,437		9,862
Net periodic pension cost	21,812		16,044		32,717		32,088

During the six month period ended June 30, 2014 and 2013, the Company made cash contributions of USD115,067 and USD91,343, respectively, to its defined benefit pension plan. The Company does not expect to make any additional cash contributions to its defined benefit pension plans during the remainder of 2014.