UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 259 258 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 25. DEFINED BENEFIT PENSION PLAN Defined benefit pension plan is by a subsidiary, Edgenta UEMS Ltd. (“UEMS Taiwan”). UEMS Taiwan has a retirement plan covering all its regular employees who opted for defined benefits plan. Benefits under the plan are based on the length of service and estimated base pay at the time of retirement. The pension assets and liabilities are valued on annual basis by independent actuary, taking into account gains and losses. The plan assets, comprising cash and cash equivalents, are deposited with the Bank of Taiwan and are managed by the government of Taiwan. The plan assets do not have quoted market prices in active market. Amount recognised in the statement of comprehensive income: Group 2021 RM’000 2020 RM’000 Interest cost on benefit obligation 4 12 Employer’s contribution (127) (357) Interest income (2) (3) Total included in employee benefits expense (Note 8) (125) (348) Net actuarial loss recognised for the year 127 114 2 (234) Amount recognised in statement of financial position: Group 2021 RM’000 2020 RM’000 Present value of defined benefit obligation 1,675 1,657 Fair value of plan assets (672) (720) Defined benefit obligation 1,003 937 25. DEFINED BENEFIT PENSION PLAN (CONTD.) Changes in present value of defined benefit obligation: Group 2021 RM’000 2020 RM’000 At 1 January 1,657 1,611 Interest cost 4 12 Benefit paid (225) (177) Actuarial loss 138 132 Exchange differences 101 79 At 31 December 1,675 1,657 Changes in fair value of plan assets: Group 2021 RM’000 2020 RM’000 At 1 January (720) (495) Employer’s contribution (127) (357) Benefit paid 225 177 Actuarial gain (11) (18) Interest income (2) (3) Exchange differences (37) (24) At 31 December (672) (720) The principal assumptions used in determining defined benefit obligation of the Group are shown below: Group 2021 2020 Discount rate 0.54% 0.25% Salary escalation 2.06% 2.00%
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