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FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT
2015
24.
TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D)
(c) Defined benefit plan – Indonesia
The Group conforms to the obligations relating to the employee benefits due under the prevailing law and
regulations.
Movement in the present value of defined benefit obligations:
The Group
2015
RM
At 1 January
-
Current service costs and interest
375,329
Actuarial gains in other comprehensive income
(42,016)
Exchange difference
12,221
At 31 December
345,534
Expenses recognised in profit or loss:
The Group
2015
RM
Current service costs and interests
375,329
Actuarial gains and losses recognised directly in other comprehensive income:
The Group
2015
RM
Actuarial gains recognised during the year
42,016
The Group defined benefit plan based on the actuarial valuation performed by an independent actuary adopting
the Projected Unit Credit method, with the following principal actuarial assumptions:
The Group
2015
i)
Mortality rate
- below 25
0.00062
- between age 25 to 30
0.00077
- between age 30 to 35
0.00085
- between age 35 to 40
0.00123
- between age 40 to 45
0.00223
- between age 45 to 50
0.00421
- between age 50 to 55
0.00594
ii)
Retirement age
55
iii) Disability rate (per annum)
10% of mortality rate
iv) Discount rate (per annum)
9.10%
v)
Expected rate of salary increases (per annum)
10.00%
NOTES TO THE FINANCIAL STATEMENTS
(cont’d)