MKH Annual Report 2018

167 MKH Berhad Annual Report 2018 26. PROVISIONS (Cont’d) (a) Post-employment benefit obligations (Cont’d) The Group 2018 2017 RM RM Amounts recognised in other comprehensive income: Remeasurement (gain)/loss (2,200,700) 848,285 Benefit paid (1,031,517) (352,618) E ect of movements in exchange rates (985,526) (227,254) At end of year 8,732,893 11,453,546 The defined benefit obligation expenses were determined based on actuarial valuations prepared by an independent actuary using the projected unit credit method. Principal assumptions at reporting date are as follows: The Group 2018 2017 Discount rate 9.25% - 9.75% 7.5% Future salary increase 10% 10% Mortality rate 100%TMI3 100%TMI3 Resignation rate 4% - 9% until 4% - 9% until age of 30 - 32 age of 30 - 32 then decrease then decrease linearly to 0% linearly to 0% at age of 56 at age of 55 Disability 5% of 5% of mortality rate mortality rate Normal retirement age 56 55 Sensitivity analysis The sensitivity analysis below has been determined based on reasonably possible changes in the discount rate and future salary increase occurring at the reporting date, while holding all other assumptions constant. The Group Increase/(Decrease) in profit 2018 2017 RM RM Discount rate increase by 1% 829,352 1,260,891 Discount rate decrease by 1% (1,159,590) (1,507,646) Future salary increase by 1% (1,153,089) (1,472,743) Future salary decrease by 1% 841,389 1,258,670 The sensitivity analysis presented above has been determined using deterministic method and may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2018