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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D)
(b) Defined benefit plan – Philippines (Cont’d)
Actuarial gains and losses recognised directly in other comprehensive income:
The Group
2016
2015
RM
RM
Actuarial losses recognised during the year
(4,568)
(14,982)
The Group defined benefit plan based on the actuarial valuation performed by an independent actuary adopting
the Projected Unit Credit method, with the following principal actuarial assumptions:
The Group
2016
2015
i)
Retirement age
60
60
ii)
Discount rate (per annum)
5.38%
5.48%
iii) Expected rate of salary increases (per annum)
2.00%
2.00%
The Group
2016
2015
(Decrease)/
(Decrease)/
Increase
Increase
Effect on defined benefit obligations
Discount rate (per annum)
- strengthened by 1%
(16,594)
(15,965)
- weakened by 1%
18,942
18,244
Expected rate of salary increases (per annum)
- strengthened by 1%
17,163
16,323
- weakened by 1%
(15,260)
(14,537)
(c) Defined benefit plan – Indonesia
The Group conforms to the obligations relating to the employee benefits due under the prevailing law and
regulations.
Notes To The Financial Statements
(cont’d)