Frontken Berhad Annual Report 2020

Annual Report 2020 118 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 25. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D) (b) Defined benefit plan – Philippines The Group conforms to the minimum regulatory benefit under prevailing law and regulations which is of the defined benefit type. The normal retirement age is 60. The plan provides a benefit equal to 22.5 days’ salary for every year of credited service. The regulatory benefits are paid in lump sum upon retirement. Movement in the present value of defined benefit obligations:- The Group 2020 2019 RM RM At 1 January 194,474 201,538 Current service costs and interest 24,354 31,365 Actuarial gains in other comprehensive income 6,956 (43,406) Exchange difference 6,483 4,977 At 31 December 232,267 194,474 Expenses recognised in profit or loss:- The Group 2020 2019 RM RM Current service costs and interests 24,354 31,365 Actuarial gains and losses recognised directly in other comprehensive income:- The Group 2020 2019 RM RM Actuarial (loss)/gain recognised during the year (6,956) 43,406 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 2020 2019 i) Retirement age 60 60 ii) Discount rate (per annum) 3.90% 5.16% iii) Expected rate of salary increases (per annum) 2.00% 2.00%