GHL System Berhad Annual Report 2020

159 a n n u a l r e p o r t 2 0 2 0 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 28. EMPLOYEE BENEFITS OBLIGATIONS (cont’d) (d) The movements in the present value of employee benefit obligations are as follows: Group 2020 2019 RM RM At 1 January 1,395,720 1,134,164 Service costs (Current and Past) 200,273 120,781 Interest 79,058 66,894 Remeasurement recognition in Other Comprehensive Income (Note 9) 521,325 43,009 Exchange differences 37,206 30,872 2,233,582 1,395,720 (e) Expenses recognised in profit or loss are as follows: Group 2020 2019 RM RM Current service cost 200,273 120,781 Interest on obligation 79,058 66,894 Net benefit expenses 279,331 187,675 (f) The principal actuarial assumptions at the end of the reporting period (expressed as weighted average) are as follows: Group 2020 2019 % % Discount rate 4.00 5.40 Average salary increase 5.00 5.00 (g) The following table demonstrates the sensitivity analysis of the Group to a reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, with other assumptions being constant, would have affected the defined benefit obligation by the amounts shown below: Group 2020 2019 Increase Decrease Increase Decrease RM RM RM RM Discount rate (1% movement) 1,903,938 (2,713,371) 1,171,021 (1,654,463) Average salary (1% movement) 2,705,225 (1,922,245) 1,652,779 (1,168,412) Although the analysis does not account for the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.