Frontken Berhad Annual Report 2020

Annual Report 2020 116 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 25. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (cONT’D) (a) Defined benefit plan – Taiwan (Cont’d) 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 2020 2019 RM RM Cash at bank 886,714 1,035,930 Short-term investments 222,391 273,149 Debentures 440,506 448,882 Fixed income investments 1,365,711 1,102,148 Equity securities 3,385,052 2,884,942 Others 827,552 622,068 7,127,926 6,367,119 Movement in the present value of defined benefit obligations:- The Group 2020 2019 RM RM At 1 January 8,495,550 8,033,229 Current service costs and interest 99,459 62,208 Actuarial losses in other comprehensive income 282,058 332,059 Exchange difference 408,066 68,054 At 31 December 9,285,133 8,495,550 Movement in the fair value of plan assets:- The Group 2020 2019 RM RM At 1 January 6,367,119 5,876,339 Expected return on plan assets 67,341 81,233 Actuarial gains in other comprehensive income 197,811 180,380 Contribution paid into the plan 189,033 176,763 Exchange difference 306,622 52,404 At 31 December 7,127,926 6,367,119