Frontken Berhad Annual Report 2017

107 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 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 2017 2016 RM RM At 1 January 414,805 345,534 Current service costs and interest 131,575 114,687 Actuarial losses/(gains) in other comprehensive income 13,237 (56,583) Defined plan payable - (18,837) Exchange difference (42,226) 30,004 At 31 December 517,391 414,805 Expenses recognised in profit or loss: The Group 2017 2016 RM RM Current service costs and interests 131,575 114,687 Actuarial gains and losses recognised directly in other comprehensive income: The Group 2017 2016 RM RM Actuarial (losses)/gains recognised during the year (13,237) 56,583 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 55 55 ii) Disability rate (per annum) 1% of 1% of mortality rate mortality rate iii) Discount rate (per annum) 7.00% 8.30% iv) Expected rate of salary increases (per annum) 10.00% 10.00% Notes To The Financial Statements (cont’d)