158 / 206
Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
146
28. Employee benefits (cont’d.)
(a) Retirement benefit obligations (cont’d.)
The plan assets comprise as follows:
Group and Company
2014
2013
%
%
Malaysian Government Securities
47
40
Cash and fixed deposits
53
60
Principal actuarial assumptions used:
Group and Company
2014
2013
%
%
Discount rate
5.3
5.0
Expected rate of salary increase
5.0
5.0
The discount rate is determined based on the values of AA rated corporate bond yields with 3 to 15 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
Discount rate
Expected salary growth
Increase by 1% Decrease by 1% Increase by 1% Decrease by 1%
RM’000
RM’000
RM’000
RM’000
At 31 December 2014
(Decrease)/increase on defined benefit obligations
(1,547)
1,689
1,747
(1,631)
At 31 December 2013
(Decrease)/increase on defined benefit obligations
(1,994)
2,134
2,198
(2,050)
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.