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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110)
(21185-P)
• Annual Report 2020
173
30. Retirement benefit obligations (cont’d.)
(c) Movements in the net liability during the financial year are as follows:
Group
2020
2019
RM’000
RM’000
At 1 April 2019/2018
1,831
1,813
Recognised in profit or loss (Note 8)
273
240
Benefits paid
(77)
(141)
Remeasurement of defined benefit liability
201
(110)
Exchange differences
(155)
29
At 31 March
2,073
1,831
(d) Principal assumptions used by the foreign subsidiary in Indonesia in determining employee benefits liability as of 31 March
2020 and 2019 are as follows:
Group
2020
2019
Discount rate
6.97%
8.00%
Annual salary increase
7.00%
7.00%
Retirement age
55
55
The discount rate is determined based on the values of AA rated corporate bond yields with 3 to 15 years of maturity, converted
to estimated spot rates.
Significant actuarial assumptions for determination of the defined benefit obligation are discount rate and expected salary
increase. The sensitivity analysis below has been determined based on changes to individual assumptions, with all other
assumptions held constant:
Group
2020
2019
RM’000
RM’000
A 1 per cent decrease/increase in discount rate will increase/decrease the defined
benefit obligation by
144
146
A 1 per cent increase/decrease in expected salary growth will increase/decrease the
defined benefit obligation by
145
128
The sensitivity analysis presented above may not be representative of the actual change in defined benefit obligation as it is
unlikely the change in assumptions would occur in isolation of one another as some assumptions may be correlated.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous year.