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(11817-V) |

Annual Report



2.3 Summary of Significant Accounting Policies (Cont’d)

(m) Employee Benefits (Cont’d)

(ii) Defined Contribution Plan

As required by law, companies in Malaysia make contributions to the national pension

scheme, the Employees Provident Fund (“EPF”). Such contributions are recognised as an

expense in the profit or loss as incurred.

(iii) Defined Benefit Plan

Foreign subsidiary in Indonesia

The foreign subsidiary in Indonesia, operates an unfunded, defined benefit Retirement

Benefit Scheme (“the Scheme”) for its eligible employees. The foreign subsidiary’s obligation

under the Scheme, calculated using the Projected Unit Credit Method, is determined based

on actuarial assumptions by independent actuaries, through which the amount of benefit that

employees have earned in return for their services in the current and prior years is estimated.

That benefit is discounted in order to determine its present value. Actuarial gains and losses

are recognised immediately through other comprehensive income in order for the net pension

assets or liability recognised in the consolidated statement of financial position to reflect the

full value of the plan deficit or surplus. Past service costs are recognised immediately to the

extent that the benefits are already vested, and otherwise are amortised on a straight-line

basis over the average period until the amended benefits become vested.

The amount recognised in the statement of financial position represents the present value

of the defined benefit obligations adjusted for unrecognised past service costs, and reduced

by the fair value of plan assets. Any asset resulting from this calculation is limited to the net

total of any past service costs, and the present value of any economic benefits in the form of

refunds or reductions in future contributions to the plan.

The latest actuarial valuation was carried out using the employee data as at 31 March 2016

by PT Milliman Indonesia, an independent actuary dated 18 April 2016.