180 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 46 PROVISION FOR ASSET RETIREMENT 2023 RM’000 2022 RM’000 At 1 January 32,821 42,015 Reversal of provision for the financial year - (10,116) Unwinding of discount 418 421 Payment made during the financial year (317) (26) Currency translation differences 486 527 At 31 December 33,408 32,821 Provision for asset retirement mainly relates to the Group’s fatty acids manufacturing facility in USA and mills in Malaysia. The asset retirement obligation is computed based on detailed estimates, adjusted for inflation, escalated to the estimated spending dates, and then discounted using an average risk-free interest rate of which represents management’s best estimate of the liability. Actual costs to be incurred in future periods may vary from estimates, given the inherent uncertainties in evaluating certain exposures subject to the imprecision in estimating the asset retirement obligation. 2023 RM’000 2022 RM’000 Analysed as: Non-current 32,674 32,119 Current 734 702 33,408 32,821 47 PROVISION FOR DEFINED BENEFIT PLAN The Group operates defined benefit retirement plans in Malaysia, Thailand and Indonesia for all eligible employees. All of the plans are lump sum payments depending on members’ length of service and their salary in the final years leading up to retirement. As the retirement benefit plans are unfunded, the Group meets the defined benefit payment obligations as they fall due. Group Company 2023 RM’000 2022 RM’000 2023 RM’000 2022 RM’000 Non-current - Retirement benefit scheme 26,050 26,709 560 480 - Housing assistance scheme 19,085 17,573 - - - Long service award 16,937 3,699 389 88 62,072 47,981 949 568
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