MKH Annual Report 2018

166 MKH Berhad Annual Report 2018 26. PROVISIONS (Cont’d) The above provisions are classified as follows: Post- employment benefit Retirement obligations gratuity Total RM RM RM The Group 2018 Non-current 8,732,893 - 8,732,893 Current - 20,183,386 20,183,386 8,732,893 20,183,386 28,916,279 2017 Non-current 11,453,546 - 11,453,546 Current - 20,183,386 20,183,386 11,453,546 20,183,386 31,636,932 (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 2018 2017 RM RM Present value of obligations 8,732,893 11,453,546 Movement in the present value of unfunded defined benefit scheme in the current financial year are as follows: The Group 2018 2017 RM RM At beginning of year 11,453,546 10,352,428 Amounts recognised in profit or loss (Note 6): Current service costs 4,283,727 5,549,694 Interest on obligation 775,264 643,133 Past service cost (3,561,901) (5,360,122) 1,497,090 832,705 FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018 NOTES TO THE FINANCIAL STATEMENTS