FGV Annual Report 2012

104 Felda Global Ventures Holdings Berhad 44 PROVISION FOR DEFINED BENEFIT PLAN (continued) The principal actuarial assumptions used in respect of the Group’s and Company’s unfunded defined retirement benefits are as follows: Group Company 2012 2011 2012 2011 RM’000 RM’000 RM’000 RM’000 % % % % Discount rate 5.25 6.25 6.25 6.25 Expected rate of salary increase 6.00 6.00 6.00 6.00 The sensitivity of the defined benefit obligation of the Group to changes in the weighted principal assumption is: Impact on defined Change in benefit assumption obligation RM ‘000 Discount rate 1% 1,254 Salary growth rate 1% 99 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 did not change compared to the previous financial year. The weighted average duration of the defined benefit obligation is 35.8 (2011: 35.9) years. Expected maturity analysis of undiscounted retirement benefit: Less than Between Between Over 5 a year 1 – 2 years 2 – 5 years years Total RM’000 RM’000 RM’000 RM’000 RM’000 Provision for defined benefit plan At 31 December 2012 1,112 4,481 7,519 39,857 52,969 At 31 December 2011 468 14 100 676 1,258 Notes to the Financial Statements for the financial year ended 31 December 2012