Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)28. Employee benefits (cont’d)b) Pension benefits plan (cont’d)ii)Based on the actuarial report which measures the pension assets and liabilities, the reconciliation between thefunding status of pension plan and accrued pension liability was as follows:Group2006 2005$’000 $’000Benefi t obligationNon-vested benefi t obligation 511 363Effect of projected future salary increase 1,164 864Projected benefi t obligation 1,675 1,227Fair value of plan assets (1,166) (1,154)Status of pension plan 509 73Unrecognised net transitional obligation (213) (245)Unamortised actuarial gain 25 601Provision for pension benefi ts 321 429iii)Changes in the present value of the projected benefi t obligation are as follows:Group2006 2005$’000 $’000Benefi t obligation at beginning of year 1,227 1,847Service cost 38 142Interest cost 41 249Actuarial losses/(gains) on obligation 486 (1,018)Exchange differences on foreign plan (117) 7Benefi t obligation at end of year 1,675 1,227Notes to the Financial Statements 143Annual Report 2006