180 / 232
Notes to the
Financial Statements
As at 31 March 2019
29. Retirement benefit obligations
Group
2019
2018
RM’000
RM’000
At 1 April 2018/2017
1,813
1,837
Recognised in profit or loss (Note 6)
240
289
Contributions paid
(141)
(43)
Remeasurement of defined benefit liability
(110)
(49)
Exchange differences
29
(221)
At 31 March
1,831
1,813
The foreign subsidiary in Indonesia operates an unfunded defined benefit plan for its eligible employees. The
obligations under the retirement benefit scheme 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 2019.
(a) The amounts recognised in the statement of financial position are determined as follows:
Group
2019
2018
RM’000
RM’000
Present value of unfunded defined benefits obligations
1,831
1,813
Analysed as:
Non-current
1,831
1,813
(b) The amounts recognised in the profit or loss are as follows:
Group
2019
2018
RM’000
RM’000
Current service cost
147
200
Interest cost
93
89
Total, included in employee benefits expense (Note 6)
240
289
(c) The principle assumptions used by the foreign subsidiary in Indonesia in determining employee benefits
liability as of 31 March 2019 and 2018 are as follows:
2019
2018
Discount rate
8.00%
7.25%
Annual salary increase
7.00%
7.00%
Retirement age
55
55
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
176