MKH Annual Report 2017

26. PROVISIONS (continued) (a) Post-employment benefit obligations Two subsidiaries of the Company in Indonesia operate unfunded defined benefit schemes, as required under the Labour Law of the Republic of Indonesia. The defined benefit schemes expose the Group to actuarial risks, such as longevity risk and interest rate risk. The amount recognised in the consolidated statement of financial position is determined as follows: The Group 2017 2016 RM RM Present value of obligations 11,453,546 10,352,428 Movement in the present value of unfunded defined benefit scheme in the current financial year are as follows: The Group 2017 2016 RM RM At beginning of year 10,352,428 6,310,729 Amounts recognised in profit or loss (Note 6): Current service costs 5,549,694 3,706,754 Interest on obligation 643,133 613,755 Past service cost (5,360,122) (1,962,984) 832,705 2,357,525 In respect of subsidiary acquired - 418,548 Amounts recognised in other comprehensive income: Remeasurement loss 848,285 1,028,501 Benefit paid (352,618) (223,580) Effect of movements in exchange rates (227,254) 460,705 At end of year 11,453,546 10,352,428 Notes to the Financial Statements For the Financial Year ended 30 September 2017 164 MKH Berhad • Annual Report 2017