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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
24.
TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D)
Included in other payables are defined benefit plan as detailed below:
The Group
2015
2014
RM
RM
Defined benefit plan (Overseas subsidiaries)
- Taiwan
1,860,145
231,622
- Philippines
227,743
152,034
- Indonesia
345,534
-
2,433,422
383,656
(a) Defined benefit plan – Taiwan
The Group
2015
2014
RM
RM
Fair value of plan assets
(5,258,185)
(4,210,596)
Present value of plan obligations
7,118,330
5,349,093
Past service cost not yet recognised
-
(906,875)
1,860,145
231,622
The Group contributes to a defined benefit plan that provides retirement benefits for employees upon retirement
based on the following:-
i)
2 months average salary for each year for the first 15 years of working; and
ii)
1 month average salary for each year subsequent to 15 years of working.
A maximum entitlement for a retired employee is 45 months average salary. The average salary of a retired
employee is calculated based on the average 6 months’ salary prior to his retirement date.
Plan assets comprise:
The Group
2015
2014
RM
RM
Cash at bank
936,483
792,434
Short-term investments
79,924
105,265
Debentures
648,860
485,482
Fixed income investments
812,916
618,115
Equity securities
2,575,459
2,040,455
Others
204,543
168,845
5,258,185
4,210,596
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)