MKH BERHAD | ANNUAL REPORT 2023 227 30. 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 longevity risk and interest rate risk. The amount recognized in the consolidated statement of financial position is determined as follows: The Group 2023 2022 RM RM Present value of obligations 18,784,548 15,705,768 Movement in the present value of unfunded defined benefit schemes in the current financial year is as follows: The Group 2023 2022 RM RM At beginning of year 15,705,768 15,210,765 Amounts recognized in profit or loss (Note 6): Current service costs 3,318,847 2,105,784 Interest on obligation 1,096,773 1,057,573 4,415,620 3,163,357 Amounts recognized in other comprehensive income: Remeasurement losses/(gains) 272,040 (1,357,259) Benefit paid (1,654,562) (1,978,521) Effect of movements in exchange rates 45,682 667,426 At end of year 18,784,548 15,705,768 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
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