Annual Report 2012 - ecoWise Holdings Limited

126ecoWise Holdings Limitedannual report 201231 OCTOBER 2012NOTES TO THE FINANCIAL STATEMENTS28. PROVISION FOR RETIREMENT BENEFIT OBLIGATIONSThe Group operates a defined benefit plan for qualifying employees of its subsidiaries in Malaysia. Under thescheme, the employees are entitled to two weeks of their last drawn salary for every year of employmentserved having fulfilled certain conditions. No other post-retirement benefits are provided. The scheme is notheld separately by an independent administrated fund as the scheme is not a funded arrangement. Newemployees of the subsidiaries in Malaysia are not entitled to such retirement benefits.Group2012 2011$’000 $’000Provision for retirement benefit obligations 584 542The movements in the provision for retirement benefit obligations and the amounts recognised in the profitor loss during the reporting year are as follows:Group2012 2011$’000 $’000At beginning of the reporting year 542 592Effects of movements in exchange rates (10) (47)Current service cost 45 30Interest expenses on retirement benefit obligations 34 32Actuarial gain (11) (11)Benefits paid (16) (54)At end of the reporting year 584 542The principal actuarial assumptions used in respect of the Group’s defined benefit plan were as follows:Group2012 2011% %Discount rate 6.24 6.24Expected rate of salaries increase 4.00 4.00The assumptions relating to longevity used to compute the retirement benefit obligations are based on thepublished mortality tables commonly used by the actuarial professionals in Malaysia.