FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 311 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 EXAMINED OUR NUMBERS 50 PROVISION FOR DEFINED BENEFIT PLAN (CONTINUED) The Group follows the Malaysian Minimum Retirement Age Act 2012 whereby the benefit shall be paid at age of 60 for retirement scheme in Malaysia. However, the normal retirement age for the housing assistance scheme will remain at age 56 which will be payable at attainment of 56 years old, regardless of whether employees continue employment until the minimum retirement age of 60 years old. There will be no benefits payable for services rendered from age 55 to 60. The defined benefit plan for Indonesian subsidiary is described under Indonesian Labour Law No. 13/2003 and the Thailand subsidiary is under the Legal Severance Plan where the companies are required to pay legal severance payments to employees who leave employment at their retirement age, or are terminated by the companies without reason. The movements during the financial year in the amounts recognised in the statement of financial position of the Group and Company are as follows: Group Company 2018 RM’000 2017 RM’000 2018 RM’000 2017 RM’000 Present value of unfunded obligation: At 1 January 87,768 71,907 2,018 1,583 Charge to profit or loss 2,606 11,523 203 287 Benefits paid (5,660) (3,500) (91) (20) Re-measurement (2,034) 8,109 (36) 168 Currency translation difference 281 (271) - - At 31 December 82,961 87,768 2,094 2,018 The remeasurement amounts recognised in the other comprehensive income are determined as follows: Group Company 2018 RM’000 2017 RM’000 2018 RM’000 2017 RM’000 Re-measurement: - Changes in financial assumptions (586) 822 104 16 - Experience adjustments (1,448) 7,287 (140) 152 (2,034) 8,109 (36) 168