FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 292 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 47 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 1% Decrease by RM5,190 Increase by RM6,084 ii) Salary growth rate Increase 1% Decrease 1% Increase by RM1,770 Decrease by RM2,251 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 12 to 27 (2016: 15 to 28) 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 2017 2,324 4,652 16,964 194,979 218,919 At 31 December 2016 2,679 7,447 25,831 178,679 214,636