MKH Annual Report 2019

189 M K H B e r h a d 27. PROVISIONS (CONT’D) (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 longetivity risk and interest rate risk. The amount recognised in the consolidated statements of financial position is determined as follows: The Group 30.9.2019 30.9.2018 1.10.2017 RM RM RM Present value of obligations 14,561,360 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 2019 2018 RM RM At beginning of year 8,732,893 11,453,546 Amounts recognised in profit or loss (Note 6): Current service costs 3,983,020 4,283,727 Interest on obligation 1,281,687 775,264 Past service cost 4,852,579 (3,561,901) 10,117,286 1,497,090 Amounts recognised in other comprehensive income:  Remeasurement gain (4,090,635) (2,200,700) Benefit paid (785,667) (1,031,517) Effect of movements in exchange rates 587,483 (985,526) At end of year 14,561,360 8,732,893 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019