Bursa Malaysia • Annual Report 2013
149
Financial Reports
27. Employee benefits (cont’d.)
(a) Retirement benefit obligations (cont’d.)
Principal actuarial assumptions used:
Group and Company
31.12.2013
31.12.2012
%
%
Discount rate
5.0
5.0
Expected rate of salary increase
5.0
*
*
First year at 13% and second year onwards at 5%.
The discount rate is determined based on the values of AA rated corporate bond yields with three to fifteen years of maturity.
Significant actuarial assumptions for determination of the defined benefits obligation are discount rate and expected salary increase. The sensitivity
analysis below has been determined based on changes to individual assumptions, with all other assumptions held constant:
Group and
Company
31.12.2013
RM’000
A 1% decrease/increase in discount rate will increase/decrease the defined benefit obligation by
2,134
A 1% increase/decrease in expected salary growth will increase/decrease the defined benefit obligation by
2,198
The sensitivity analysis presented above may not be representative of the actual change in defined benefit obligation as it is unlikely that the change
in assumptions would occur in isolation of one another as some assumptions may be correlated.
The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous year.
Notes to the Financial Statements
31 December 2013
