c) Actuarial gain or loss on defined benefit obligations as at 31 December 2017

RM’000 RM’000
Fair value at the beginning of the year 5500
Add: Current service cost 5150
Past service cost 900
Imputed interest cost (10% x 5500) 550
Less: Benefits paid (3000)
Fair value at the end of the year (9350)
Actuarial Loss (250)

Actuarial gain or loss on plan assets as at 31 December 2017

RM’000 RM’000
Fair value at the end of the year 9875
Less: Fair value at the beginning of the year (5675)
Contribution (5325)
Add: Benefits paid 3000
Actuarial Return on plan asset 1875

Actual gain = 1875 – (12% x 5675) 1194

d) Net defined benefit liability/asset as at 31 December 2017:

RM’000
Defined benefit obligation 9350
Fair value of plan asset (9875)
Liability/ (Asset) (525)
e) Applying paragraph 64 of MFRS 119, the defined benefit asset to be recognized in the
Statement of Financial Position as at 31 December 2017 will be RM 500,000, being the lower of
two figures (i.e. RM 500,000 is less than RM 525,000).
The reduction in the fair value of the asset from RM 525,000 to RM 500,000 is the effect of the
asset ceiling. The amounts that will be recognized in profit or loss and other comprehensive
income are as follows:
Effect on asset ceiling (525000 – 500000) 25000
Interest on effect of asset ceiling to profit or loss
(25000 x 10%) (2500)
Remeasurement cost to other comprehensive income 22500