2019 UEM Edgenta Annual Report

224 Notes to the Financial Statements For the year ended 31 December 2019 28. PROVISIONS Group 2019 RM’000 2018 RM’000 Non-current: Provision for employee service entitlements (Note a) 2,382 1,872 Current: Provision for long term incentive plan (Note b) 1,620 1,620 Total 4,002 3,492 (a) Provision for employee service entitlements Group 2019 RM’000 2018 RM’000 At 1 January 1,872 1,395 Charged to the income statement (Note 8) 530 532 Exchange differences (20) (55) At 31 December 2,382 1,872 Provision for employee service entitlements comprises provisions for retirement leave entitlements in respect of eligible employees. The provisions are in respect of both vested and unvested entitlements, and aremade by reference to independent actuarial valuations. The timing of such payments depends on when vesting occurs and the subsequent retirement date of the eligible employees. (b) Provision for long term incentive plan (“LTIP”) The Group under some of its subsidiaries grant the Shadow Share Option Scheme, i.e. LTIP, to eligible employees, as part of the remuneration package, whereby the employees will be entitled to future cash payments subject to meeting the pre-determined financial performance and value growth targets of the Group over a specific performance vesting period.