2019 UEM Edgenta Annual Report

222 Notes to the Financial Statements For the year ended 31 December 2019 27. DEFINED BENEFIT PENSION PLAN Defined benefit pension plan is by a subsidiary, Edgenta UEMS Ltd. (“UEMS Taiwan”). UEMS Taiwan has a retirement plan covering all its regular employees who opted for defined benefits plan. Benefits under the plan are based on the length of service and estimated base pay at the time of retirement. The pension assets and liabilities are valued on annual basis by independent actuary, taking into account gains and losses. The plan assets, comprising cash and cash equivalents, are deposited with the Bank of Taiwan and are managed by the government of Taiwan. The plan assets do not have quoted market prices in active market. Amount recognised in the income statement and statement of comprehensive income: Group 2019 RM’000 2018 RM’000 Interest cost on benefit obligation 20 31 Employer’s contribution (745) (55) Interest income - (5) Total included in employee benefits expense (Note 8) (725) (29) Net actuarial loss/(gain) recognised for the year 64 (104) (661) (133) Amount recognised in statement of financial position: Group 2019 RM’000 2018 RM’000 Present value of defined benefit obligation 1,611 1,797 Fair value of plan assets (495) (38) Defined benefit obligation 1,116 1,759 Changes in present value of defined benefit obligation: Group 2019 RM’000 2018 RM’000 At 1 January 1,797 2,286 Interest cost 20 31 Benefit paid (288) (403) Actuarial loss/(gain) 70 (100) Exchange differences 12 (17) At 31 December 1,611 1,797