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Provision for Employee Benefits
 12 Months Ended
Dec. 31, 2023
Provision for Employee Benefits [Abstract]  
PROVISION FOR EMPLOYEE BENEFITS
18. PROVISION FOR EMPLOYEE BENEFITS

 

Prior to March 30, 2022, the Company had a retired benefit plan (“Plan A”), another plan (“Plan B”) was established in 2022, both plans are based on the requirements 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. The plan asset is unfunded and the Company will pay benefits when needed.

 

According to IAS 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 Plan A’s 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   17%   24%
31-40   8%   16%
41-50   6%   13%
Above 50   0%   0%

 

Financial Assumptions:

 

  1. Discount Rate: Single weighted average discount rate is 2.85% 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, 2023. Duration (or single weighted average remaining time to retire) is 20.31 years.

 

  2. Salary Increase Rate: 1.70% 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 Plan A’s retired benefit obligation:

 

   As of December 31, 
   2023   2022 
Defined benefit obligations at January 1,  $4,827,800   $5,827,355 
Transfer to R&I   -    (19,304)
Benefits paid during the year   (578,457)   (922,305)
Current service costs   442,700    459,975 
Interest   121,651    110,483 
Past service cost and gain on settlement   37,677    155,697 
Actuarial gain (loss)   3,431    (559,544)
Exchange differences   55,265    (224,557)
Defined benefit obligations at December 31,  $4,910,067   $4,827,800 

 

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, 2023

 

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  $4,526,095   $(383,972)   -7.82   -1  $5,354,805   $444,737    9.06 
Salary Increase Rate  1   5,197,550    287,483    5.86   -1   4,658,682    (251,385)   -5.12 
Turnover Rate  1   4,749,274    (160,793)   -3.27   -1   4,961,641    51,574    1.05 
Life Expectancy  +1 Year   4,920,291    10,224    0.21   -1 Year   4,899,921    (10,146)   -0.21 

 

For the year ended December 31, 2022

 

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  $4,500,166   $(327,634)   -6.79   -1  $5,201,435   $373,635    7.74 
Salary Increase Rate  1   5,064,621    236,821    4.91   -1   4,617,667    (210,133)   -4.35 
Turnover Rate  1   4,683,817    (143,983)   -2.98   -1   4,871,730    43,930    0.91 
Life Expectancy  +1 Year   4,837,009    9,207    0.19   -1 Year   4,818,657    (9,143)   -0.19 

 

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 

 

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

 

Year  Defined
Benefit
Obligation		 
2024  $362,284 
2025   321,130 
2026   276,878 
2027   360,796 
2028   248,829 
2029   252,801 
2030   356,732 
2031   548,682 
2032   253,819 
2033   212,944 
2034-2048   13,008,757 
>2048   8,081,234 

 

The following assumptions have been adopted for Plan B’s 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 Indirect
Cost Staff		 
Below 31   24%
31-40   16%
41-50   13%
Above 50   0%

 

Financial Assumptions:

 

  1. Discount Rate: Single weighted average discount rate is 3.03% 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, 2023. Duration (or single weighted average remaining time to retire) is 26.48 years.

 

  2. Salary Increase Rate: 1.70% 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 Plan B’s retired benefit obligation:

 

   As of December 31, 
   2023   2022 
Defined benefit obligations at January 1,  $21,814   $- 
Transfer from GF Cash (CIT)   -    19,304 
Benefits paid during the year   (2,884)   - 
Current service costs   4,876    1,971 
Interest   607    285 
Past service cost and loss on settlement   2,491    - 
Actuarial loss   (1,298)   - 
Exchange differences   309    254 
Defined benefit obligations at December 31,  $25,915   $21,814 

 

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, 2023

 

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  $23,156   $(2,760)   -10.65   -1  $29,123   $3,208    12.38 
Salary Increase Rate  1   28,622    2,707    10.45   -1   23,565    (2,351)   -9.07 
Turnover Rate  1   24,032    (1,883)   -7.27   -1   26,976    1,061    4.09 
Life Expectancy  +1 Year   26,000    84    0.32   -1 Year   25,832    (84)   -0.32 

 

For the year ended December 31, 2022

 

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  $19,346   $(2,469)   -11.32   -1  $24,710   $2,896    13.27 
Salary Increase Rate  1   24,176    2,362    10.83   -1   19,782    (2,032)   -9.32 
Turnover Rate  1   20,142    (1,672)   -7.67   -1   22,799    985    4.51 
Life Expectancy  +1 Year   21,887    73    0.33   -1 Year   21,742    (72)   -0.33 

 

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

 

Year  Defined
Benefit
Obligation		 
2024  $- 
2025   - 
2026   - 
2027   - 
2028   - 
2029   - 
2030   - 
2031   - 
2032   - 
2033   - 
2034-2048   311,388 
>2048   286,118