Eng - IOI Group

Notes To The Financial Statements cont’d35. OTHER LONG TERM LIABILITIES cont’d35.1 Retirement benefitsGroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000Present value of funded obligations 278,221 257,497 - -Fair value of plan assets (234,446) (199,802) - -43,775 57,695 - -Present value of unfunded obligations 18,649 12,658 1,021 1,108Present value of net obligations 62,424 70,353 1,021 1,108Unrecognised actuarial losses (23,166) (30,526) - -Unrecognised past service cost 863 1,092 - -Recognised liability for defined benefit obligations 40,121 40,919 1,021 1,108The Company and certain subsidiaries operate defined benefit plans. The plans of the Company and Malaysian subsidiariesare operated on an unfunded basis whilst certain foreign subsidiaries are operating funded defined benefit plans. Thebenefits payable on retirement are generally based on the length of service and average salary of the eligible employees.The last actuarial valuations for the unfunded and funded plans were carried out on 30 June 2007 and 30 June 2006.Movement in the net liability recognised in the balance sheets:GroupCompany2007 2006 2007 2006RM’000 RM’000 RM’000 RM’000Net liability at beginning of financial year 40,919 55,439 1,108 1,042Contributions to funded plans (22,971) (21,290) - -Benefits paid for unfunded plans (633) (746) (95) (96)Expense recognised in the income statement 18,370 5,874 8 162Reversal of provision in prior year - 1,092 - -Addition through subsidiaries acquired 7,354 - - -Reduction through subsidiary disposed (1,982) - - -Foreign currency translation differences (936) 550 - -Net liability at end of financial year 40,121 40,919 1,021 1,108207ANNUAL REPORT 2007IOI Corporation Berhad