Section 8 UEM Edgenta Berhad FINANCIAL STATEMENTS 350 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 34. PROVISIONS (CONTD.) (a) Provision for employee service entitlements Group 2023 RM’000 2022 RM’000 At 1 January 4,280 3,441 Charged to the statement of comprehensive income (Note 8) 171 653 Exchange differences (319) 186 At 31 December 4,132 4,280 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”) Group 2023 RM’000 2022 RM’000 At 1 January 1,620 1,620 Reversal of provision (Note 7) (1,620) - At 31 December - 1,620 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. During the financial year, the provision has been reversed as its realisation no longer probable.
RkJQdWJsaXNoZXIy NDgzMzc=