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32. Provision for retirement benefits (cont’d.)
The amounts of retirement benefit expense recognized in profit or loss for the year ended 31 December are as follows:
Group
2017
RM’000
Current service cost
8,392
Interest cost on benefit obligations
4,161
Employee benefits expense
12,553
The provision for retirement benefits is charged to profit or loss as part of salaries and employee benefits in operating expenses.
The movement in the reserve for remeasurements on retirement benefit obligation for the year ended 31 December is as follows:
Group
2017
RM’000
Beginning of the year
–
Remeasurement loss
1,399
1,399
The amounts recognised in other comprehensive income for the year ended 31 December are as follows:
Group
2017
RM’000
Remeasurement loss on changes in financial assumptions
3,990
Remeasurement gain on experience adjustments
(2,591)
1,399
The principal acturial assumptions used for the year ended 31 December are as follows:
PAA
IAA
Discount rate
5.19%
7.30%
Salary increase rate per annum
5.00%
8.00%
The average durations of the benefit obligation at 31 December 2017 were 29 years and 21 years for PAA and IAA respectively.
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
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AirAsia Berhad
REPORTS AND FINANCIAL STATEMENTS
328