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financiAL STATEMENTs
Annual Report 2017
149
NOTES TO THE FINANCIAL STATEMENTS
27. RETIREMENT BENEFIT OBLIGATIONS (Cont’d.)
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
2017
2016
RM’000
RM’000
A 1 per cent decrease/increase in discount rate will
increase/decrease the defined benefit obligation by
143
121
A 1 per cent increase/decrease in expected salary growth will
increase/decrease the defined benefit obligation by
129
104
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.
28. FINANCE LEASE OBLIGATIONS
Group
2017
2016
RM’000
RM’000
Mininum lease payments:
- Not later than 1 year
742
726
- Later than 1 year but not later than 5 years
4,030
3,697
- Later than 5 years
83,595
84,671
Total minimum lease payments
88,367
89,094
Less: Amounts representing finance charges
(71,567)
(71,649)
Present value of minimum lease payments
16,800
17,445
Present value of finance lease payables:
- Not later than 1 year
624
646
- Later than 1 year but not later than 5 years
2,284
2,257
- Later than 5 years
13,892
14,542
Present value of minimum lease payments
16,800
17,445
Less: Amount due within 12 months
(624)
(646)
Amount due after 12 months
16,176
16,799