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Provision for Employee Benefits
 12 Months Ended
Dec. 31, 2021
Disclosure of employee benefits [text block] [Abstract]  
PROVISION FOR EMPLOYEE BENEFITS
16. PROVISION FOR EMPLOYEE BENEFITS

 

The Company has a defined benefit plan based on the requirement of the Thailand Labor Protection Act B.E.2541 (1988) to provide retirement benefits to employees based on pensionable remuneration and length of service which are considered as unfunded. There were no plan assets set up and the Company will pay benefits when needed.

 

According to IFRS 19 (Revised 2017), the use of Projected Unit Credit (PUC) Cost Method is required in order to determine the actuarial liability based on past service and expected future salary. Thus, the actuarially acceptable assumptions on salary scale are needed. Actuarial assumptions on other components of the benefit formulas are also required to measure the obligation such as demographic assumptions and financial assumptions. All of these assumptions are important because they are directly related to a possibility of actuarial gains and losses. Moreover, the obligations are measured on a discounted basis because they may be settled many years after the employees render the related service.

 

The following assumptions have been adopted for this actuarial valuation: 

 

Demographic Assumptions:

 

  1. Mortality Table (Annual Death Rate): Male and Female Thai Mortality Ordinary Tables of 2017 (TMO 2017) which is the latest mortality table from the Office of Insurance Commission in Thailand.

 

  2. Annual Disability Rate: 5% of the Male and Female TMO 2017.

 

  3. Annual Voluntary Resignation: Age related rates as follows.

 

Age Group (Years)  Annual Voluntarily
Resignation Rate
of Direct
Cost Staff		   Annual Voluntarily
Resignation
Rate
of Indirect
Cost Staff		 
Below 31      31%       16%
31-40   16%   8%
41-50   14%   6%
Above 50   0%   0%

 

  4. Annual Forced Resignation: Age related rates as follows.

 

Age Group (Years)   Annual
Forced
Resignation
Rate		  
Below 31             0 %
31-40     0 %
41-50     0 %
Above 50     0 %

 

Financial Assumptions:

 

  1. Discount Rate: Single weighted average discount rate is 1.92% per year based on the zero coupon yield rate of government bonds in Thailand from the Thai Bond Market Association (Thai BMA) as of December 31, 2021. Duration (or single weighted average remaining time to retire) is 12 years.

 

  2. Salary Increase Rate: 3.00% per year. The projected salary is calculated at the time of retirement or forced resignation.

 

  3. Taxes payable by the plan: The contributions are not a tax-deductible expense according to the Revenue Department in Thailand so there are no taxes payable by the plan

 

Movement in the present value of the defined benefit obligation:

 

   As of December 31, 
   2021   2020 
Defined benefit obligations at January 1,  $6,841,673   $6,439,795 
Benefits paid during the year   (462,306)   (517,531)
Current service costs   649,242    770,934 
Interest   102,196    96,019 
Past service cost and gain (loss) on settlement   
-
    36,939 
Actuarial loss   (627,193)   8,772 
Exchange differences   (676,257)   6,745 
Defined benefit obligations at December 31,  $5,827,355   $6,841,673 

 

The following table presents the sensitivity analysis for each significant actuarial assumption with a variation of 1.0% in the assumptions as of the end of the reporting period:

 

For the year ended December 31, 2021

 

Assumption  % Change
(+) in
Assumption		   Liability   Amount
Change in
Liability		   % Change
in Liability		   % Change
(-) in
Assumption		   Liability   Amount
Change in
Liability		   % Change
in Liability		 
Discount Rate   1   $5,406,718   $(412,414)   -7.09    -1   $6,291,799   $472,667    8.12 
Salary Increase Rate   1    6,141,412    322,280    5.54    -1    5,534,865    (284,267)   -4.89 
Turnover Rate   1    5,596,605    (222,526)   -3.82    -1    5,905,978    86,846    1.49 
Life Expectancy   +1 Year    5,832,121    12,989    0.22    -1 Year    5,806,228    (12,904)   -0.22 

 

For the year ended December 31, 2020

 

Assumption  % Change
(+) in
Assumption		   Liability   Amount
Change in
Liability		   % Change
in Liability		   % Change
(-) in
Assumption		   Liability   Amount
Change in
Liability		   % Change
in Liability		 
Discount Rate   1   $6,246,875   $(594,798)   -8.69    -1   $7,540,239   $698,566    10.21 
Salary Increase Rate   1    7,303,544    461,871    6.75    -1    6,442,685    (398,988)   -5.83 
Turnover Rate   1    6,515,632    (326,041)   -4.77    -1    6,990,881    149,208    
2,18
 
Life Expectancy   +1 Year    6,860,711    19,038    0.28    -1 Year    6,822,778    (18,895)   -0.28 

 

For the year ended December 31, 2019

 

Assumption  % Change
(+) in
Assumption		   Liability   Amount
Change
in Liability		   % Change
in Liability		   % Change
(-) in
Assumption		   Liability   Amount
Change in
Liability		   % Change
in Liability		 
Discount Rate   1   $5,877,653   $(562,142)   -8.73    -1   $7,098,037   $658,242    10.22 
Salary Increase Rate   1    6,832,393    392,599    6.10    -1    6,098,352    (341,443)   -5.3 
Turnover Rate   1    6,131,013    (308,782)   -4.79    -1    6,576,958    137,163    2.13 
Life Expectancy   +1 Year    6,458,065    18,207    0.28    -1 Year    6,421,657    (18,137)   -0.28 

 

Maturity profile of the defined benefit obligation as of December 31, are as follow:

 

Year  Defined
Benefit
Obligation		 
2022  $563,243 
2023   275,116 
2024   266,120 
2025   426,322 
2026   339,031 
2027   549,994 
2028   359,377 
2029   319,184 
2030   477,371 
2031   759,926 
2032-2045   14,194,589 
>2045   16,054,681