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Annual Report 2020
197
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
33. Retirement benefit obligations (cont’d.)
(a)
The amounts recognised in the statement of financial position are determined as follows:
Group
2020
RM’000
2019
RM’000
Present value of unfunded defined benefits obligations
2,073
1,813
Analysed as:
Non-current
2,073
1,813
(b)
The amounts recognised in the profit or loss are as follows:
Group
2020
RM’000
2019
RM’000
Current service cost
163
147
Interest cost
110
93
Total, included in employee benefits expense (Note 6)
273
240
(c)
The principle assumptions used by the foreign subsidiary in Indonesia in determining employee benefits liability as
of 31 March 2020 and 2019 are as follows:
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.
2020
RM’000
2019
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