MKH Annual Report 2020

192 FINANCIAL STATEMENTS ANNUAL REPORT 2020 29. PROVISIONS (CONT’D) (a) Post-employment benefit obligations (Cont’d) Movement in the present value of unfunded defined benefit scheme in the current financial year are as follows: The Group 2020 RM 2019 RM At beginning of year 14,561,360 8,732,893 Amounts recognised in profit or loss (Note 6):  Current service costs 3,840,786 3,983,020  Interest on obligation 1,183,489 1,281,687  Past service cost (1,312,880) 4,852,579 3,711,395 10,117,286 Amounts recognised in other comprehensive income:  Remeasurement losses/(gains) 144,860 (4,090,635) Benefit paid (746,241) (785,667) Effect of movements in exchange rates (1,016,609) 587,483 At end of year 16,654,765 14,561,360 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 2020 2019 Discount rate 8.00% 8.25% Future salary increase 8% 8% Mortality rate 100%TMI3 100%TMI3 Resignation rate 4% - 9% until age of 30 - 32 then decrease linearly to 0% at age of 57 4% - 9% until age of 30 - 32 then decrease linearly to 0% at age of 57 Disability 5% of mortality rate 5% of mortality rate Normal retirement age 57 57