Frontken Berhad Annual Report 2017

106 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (b) Defined benefit plan – Philippines (Cont’d) Expenses recognised in profit or loss: The Group 2017 2016 RM RM Current service costs and interests 41,578 37,491 Actuarial gains and losses recognised directly in other comprehensive income: The Group 2017 2016 RM RM Actuarial gain/(losses) recognised during the year 42,928 (4,568) 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 2017 2016 i) Retirement age 60 60 ii) Discount rate (per annum) 5.70% 5.38% iii) Expected rate of salary increases (per annum) 2.00% 2.00% The Group 2017 2016 (Decrease)/ (Decrease)/ Increase Increase RM RM Effect on defined benefit obligations Discount rate (per annum) - strengthened by 1% (11,557) (16,594) - weakened by 1% 13,065 18,942 Expected rate of salary increases (per annum) - strengthened by 1% 10,968 17,163 - weakened by 1% (9,804) (15,260) Notes To The Financial Statements (cont’d)