124 / 188
120
NOTES TO THE FINANCIAL STATEMENTS
F I N A N C I A L S TAT E M E N T S
2.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(t)
Employee Benefits (Cont’d.)
(iii) Defined benefit plan
The foreign subsidiary in Indonesia, operates an unfunded, defined benefit Retirement Benefit Scheme (“the
Scheme”) for its eligible employees. The foreign subsidiary’s obligation under the Scheme, calculated using
the Projected Unit Credit Method, is determined based on actuarial assumptions by independent actuaries,
through which the amount of benefit that employees have earned in return for their services in the current
and prior years is estimated. That benefit is discounted in order to determine its present value. Actuarial gains
and losses are recognised immediately through other comprehensive income in order for the net pension
assets or liability recognised in the consolidated statement of financial position to reflect the full value of
the plan deficit or surplus. Past service costs are recognised immediately to the extent that the benefits
are already vested, and otherwise are amortised on a straight-line basis over the average period until the
amended benefits become vested.
The amount recognised in the statement of financial position represents the present value of the defined
benefit obligations adjusted for unrecognised past service costs, and reduced by the fair value of plan
assets. Any asset resulting from this calculation is limited to the net total of any past service costs, and the
present value of any economic benefits in the form of refunds or reductions in future contributions to the
plan.
The latest actuarial valuation was carried out using the employee data as at 31 March 2018 by PT Milliman
Indonesia, an independent actuary dated 15 May 2018.
(iv) Employees’ Share Scheme (“ESS”)
The Kumpulan Fima Berhad Employee’s Share Scheme (“ESS”) comprises the following:
-
Employee Share Option Scheme (“ESOS”)
The ESOS is an equity-settled share-based compensation plan that allows the directors and employees
of the Company and its subsidiaries to acquire shares of Kumpulan Fima Berhad (“KFima”). The total fair
value of share options granted to employees is recognised as an employee cost with a corresponding
increase in the equity contribution from parent reserve within equity over the vesting period and taking
into account the probability that the options will vest. The fair value of share options is measured at
grant date, taking into account, if any, the market vesting conditions upon which the options were
granted but excluding the impact of any non-market vesting conditions. Non-market vesting conditions
are included in assumptions about the number of options that are expected to become exercisable on
vesting date.
At each reporting date, the Group revises its estimates of the number of options that are expected to
become exercisable on vesting date. It recognises the impact of the revision of original estimates, if
any, in the profit or loss, and a corresponding adjustment to equity over the remaining vesting period.
The equity amount is recognised in the equity contribution from parent reserve.