MKH Berhad 185 PROVISIONS (CONT’D) 30. Notes to the Financial Statements For the Financial Year Ended 30 September 2022 Post-employment benefit obligations (Cont’d) The defined benefit obligation expenses were determined based on actuarial valuation prepared by an independent actuary using the projected unit credit method. Principal assumptions at reporting date are as follows: 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 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. As at 30 September 2022, the weighted-average duration of the defined benefit obligation was 12.66 to 16.00 years (2021: 15.75 to 16.36 years). (a) The Group 2022 2021 7.50% 7.50% Discount rate 8% 8% Future salary increase 5% of mortality rate 5% of mortality rate Disability 57 57 Normal retirement age 100%TMI3 100%TMI3 Mortality rate 22% until age of 18 then decrease linearly to 0% at age 57 / 6% until age of 38 then decrease linearly to 0% at age 57 22% until age of 18 then decrease linearly to 0% at age 57 / 6% until age of 38 then decrease linearly to 0% at age 57 Resignation rate The Group Increase/(Decrease) in profit 2022 2021 RM RM Discount rate increase by 1% 1,085,386 1,209,346 Discount rate decrease by 1% (1,226,605) (1,397,101) Future salary increase by 1% (1,238,479) (1,407,012) Future salary decrease by 1% 1,115,909 1,240,490
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