2020 UEM Edgenta Annual Report

26. PROVISIONS Group RM’000 2020 2019 Non-current: Provision for employee service entitlements (Note a) 2,891 2,382 Current: Provision for long term incentive plan (Note b) 1,620 1,620 Total 4,511 4,002 a. Provision for employee service entitlements Group RM’000 2020 2019 At 1 January 2,382 1,872 Charged to the income statement (Note 8) 564 530 Exchange differences (55) (20) At 31 December 2,891 2,382 P rovision for employee service entitlements comprises provisions for retirement leave entitlements in respect of eligible employees. The provisions are in respect of both vested and unvested entitlements, and are made by reference to independent actuarial valuations. The timing of such payments depends on when vesting occurs and the subsequent retirement date of the eligible employees. b. Provision for long term incentive plan (“LTIP”) T he Group under some of its subsidiaries grant the Shadow Share Option Scheme, i.e. LTIP, to eligible employees, as part of the remuneration package, whereby the employees will be entitled to future cash payments subject to meeting the pre-determined financial performance and value growth targets of the Group over a specific performance vesting period. ANNUAL REPORT 2020 265 1 2 3 4 5 6 7 8