FGV Audited Financial Statements 2019

198 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 50 PROVISION FOR DEFINED BENEFIT PLAN (CONTINUED) The sensitivity of the defined benefit obligation of the Group to changes in the weighted principal assumption is: Change in assumption Impact on defined benefit obligation RM’000 i) Discount rate Increase 1% Decrease by RM5,457 Decrease 1% Increase by RM6,439 ii) Salary growth rate Increase 1% Increase by RM1,579 Decrease 1% Decrease by RM2,165 The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the benefit liability recognised within the statement of financial position. The methods and types of assumptions used in preparing the sensitivity analysis have not changed compared to the previous financial year. The weighted average duration of the defined benefit obligation is 11 to 30 (2018: 11 to 27) years. Expected maturity analysis of undiscounted defined benefit obligation: Less than a year RM’000 Between 1 – 2 years RM’000 Between 2 – 5 years RM’000 Over 5 years RM’000 Total RM’000 Provision for defined benefit plan At 31 December 2019 1,948 2,995 14,116 154,006 173,065 At 31 December 2018 3,838 4,350 17,383 192,970 218,541