annual report - Tenaga Nasional Berhad

30 EMPLOYEE BENEFITS (CONT’D.)The principal actuarial assumptions used in respect of the Company’s defined benefit plans were as follows:R retirement Retirementbenefit plan medical plan% %CompanyAt 31 August 2007Discount rates 6.5 7.1Expected return on plan assets 6.0 N/AExpected rate of salary increases 6.0 N/AMedical cost inflation– inpatient N/A 8.0– outpatient N/A 5.0At 31 August 2008Discount rates 6.5 7.1Expected return on plan assets 6.0 n/AExpected rate of salary increases 6.0 n/AMedical cost inflation– inpatient N/A 8.0– outpatient N/A 5.031 DEFERRED TAXATIONDeferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets againstcurrent tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determinedafter appropriate offsetting, are shown in the balance sheet:G group Company2008 2007 2008 2007RM’million RM’million RM’million RM’millionDeferred tax liabilities:– subject to corporate income tax (6,337.4) (6,274.4) (5,499.3) (5,524.8)[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]239