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Fima Corporation Berhad
(21185-P)
financial statements
148
NOTES TO THE FINANCIAL STATEMENTS
27. RETIREMENT BENEFIT OBLIGATIONS
The foreign subsidiary in Indonesia operates an unfunded defined benefit plan for its eligible employees. The obligations under
the retirement benefit are calculated using the projected unit credit method, is determined by a qualified independent actuary,
considering the estimated future cash outflows using market yields at the reporting date of high quality corporate bonds. The
latest actuarial valuation was carried out using the employee data as at 31 March 2017.
(a)
The amounts recognised in the statement of financial position are determined as follows:
Group
2017
2016
RM’000
RM’000
Present value of unfunded defined benefits obligations
1,837
1,391
Analysed as: Non-current
1,837
1,391
(b)
The amounts recognised in the profit or loss are as follows:
Group
2017
2016
RM’000
RM’000
Current service cost
199
19
Past service cost
-
(19)
Interest cost
85
69
Total, included in staff costs (Note 7)
284
69
(c)
Movements in the net liability during the financial year are as follows:
Group
2017
2016
RM’000
RM’000
At 1 April 2016/2015
1,391
1,634
Recognised in profit or loss (Note 6)
284
69
Benefits paid
(50)
(14)
Remeasurement of defined benefit liability
100
(354)
Exchange differences
112
56
At 31 March
1,837
1,391
(d)
Principal assumptions used by the foreign subsidiary in Indonesia in determining employee benefits liability as of 31 March
2017 and 2016 are as follows:
Group
2017
2016
Discount rate
7.8%
8.7%
Annual salary increase
7.0%
7.5%
Retirement age
55
55