UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 261 260 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 25. DEFINED BENEFIT PENSION PLAN (CONTD.) Actual return on plan assets: Group 2021 RM’000 2020 RM’000 Actual return of plan assets, representing actuarial gain recognised in the other comprehensive income (11) (18) A quantitative sensitivity analysis for significant assumptions as at 31 December 2021 and 2020 are as shown below: Sensitivity Level Increase in one percentage Decrease in one percentage 2021 RM’000 2020 RM’000 2021 RM’000 2020 RM’000 Assumptions Discount rate (174) (181) 186 195 Salary increase 180 190 (171) (179) The sensitivity analysis above has been determined based on a method that extrapolates the impact on net defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The average duration of the defined benefit obligation at the end of the reporting period is 11 years (2020: 11 years). 26. PROVISIONS Group 2021 RM’000 2020 RM’000 Non-current: Provision for employee service entitlements (Note a) 3,441 2,891 Current: Provision for long term incentive plan (Note b) 1,620 1,620 Total 5,061 4,511 (a) Provision for employee service entitlements Group 2021 RM’000 2020 RM’000 At 1 January 2,891 2,382 Charged to the statement of comprehensive income (Note 8) 621 564 Exchange differences 109 (55) Payment (180) - At 31 December 3,441 2,891 Provision 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”) The 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.
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