GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 160 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 28. EMPLOYEE BENEFITS OBLIGATIONS (cont’d) (b) Employee benefits obligations is denominated in PHP. (c) The following table demonstrates the sensitivity analysis of the Group to a reasonably possible change in the PHP exchange rates against the respective functional currency of the Group entities, with all other variables held constant: Group 2019 2018 RM RM Profit after tax PHP/RM - strengthen by 10% (2018: 10%) (106,075) (86,196) PHP/RM - weaken by 10% (2018: 10%) 106,075 86,196 (d) The movements in the present value of employee benefit obligations are as follows: Group 2019 2018 RM RM At 1 January 1,134,164 466,141 Service costs (Current and Past) 120,781 609,528 Interest (Note 6) 66,894 53,649 Remeasurement recognition in Other Comprehensive Income (Note 9) 43,009 - Exchange differences 30,872 4,846 1,395,720 1,134,164 (e) The expenses recognised in profit or loss are as follows: Group 2019 2018 RM RM Current service cost 120,781 609,528 Interest on obligation 66,894 53,649 Net benefit expenses 187,675 663,177 (f) The principal actuarial assumptions at the end of the reporting period (expressed as weighted average) are as follows: Group 2019 2018 % % Discount rate 5.40 7.80 Average salary increase 5.00 5.00