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FINANCIAL REPORTS
164
Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
28. Employee benefits (cont’d.)
(a) Retirement benefit obligations (cont’d.)
The plan assets comprise the following:
Group and Company
2015
2014
%
%
Malaysian Government Securities
95
47
Cash and fixed deposits
5
53
Principal actuarial assumptions used:
Group and Company
2015
2014
%
%
Discount rate
5.3
5.3
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 2015
(Decrease)/increase in defined benefit obligations
(1,388)
1,508
1,417
(1,333)
At 31 December 2014
(Decrease)/increase in defined benefit obligations
(1,547)
1,689
1,747
(1,631)
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.