FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 298 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 47 PROVISION FOR DEFINED BENEFIT PLAN (CONT’D.) The sensitivity of the defined benefit obligation of the Group to changes in the weighted principal assumption is: Impact on defined benefit Change in obligation assumption RM’000 Discount rate 1% 3,528 Salary growth rate 1% 810 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 29.4 to 38.0 (2012: 34.3 to 37.4) years. Expected maturity analysis of undiscounted defined benefit obligation: 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 2013 843 1,555 5,417 143,303 151,118 At 31 December 2012 1,112 4,481 7,519 39,857 52,969 48 DEFERRED TAXATION Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting, are shown in the statement of financial position: Group Company 2013 2012 2013 2012 RM’000 RM’000 RM’000 RM’000 Subject to income tax - Deferred tax assets 1,281,465 1,479,710 21,257 6,435 - Deferred tax liabilities (620,192) (91,461) - -