Annual Report 2022

216 Transport International Holdings Limited 2022 Annual Report NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 20 Employee retirement benefits (continued) (a) The amount recognised in the consolidated statement of financial position is as follows: 2022 2021 $’000 $’000 Present value of funded obligations (note 20(c)) (1,053,336) (1,344,104) Fair value of plan assets (notes 20(b) and 20(d)) 2,594,327 3,303,566 1,540,991 1,959,462 Represented by: Employee benefit assets 1,540,991 1,959,462 A portion of the above asset is expected to be recovered after more than one year. However, it is not practicable to segregate this amount from the amounts recoverable in the next twelve months, as future refund will also relate to future services rendered and future changes in actuarial assumptions and market conditions. The expected annual contribution to defined benefit retirement schemes for the year ending 31 December 2023 is $Nil (2022: $Nil). (b) Plan assets consist of the following: 2022 2021 $’000 $’000 Equity securities: – Hong Kong and Mainland China 441,036 618,181 – Rest of Asia Pacific 302,852 748,050 – Europe 216,148 450,730 – North America 268,036 660,713 1,228,072 2,477,674 Bonds 1,219,335 717,288 Cash and others 146,920 108,604 2,594,327 3,303,566 All of the equity securities and bonds have quoted prices in active markets. (c) Movements in the present value of the defined benefit obligations: 2022 2021 $’000 $’000 At 1 January 1,344,104 1,703,054 Remeasurements: – Actuarial gains arising from changes in demographic assumptions (2,668) (81) – Actuarial gains arising from changes in financial assumptions (157,102) (69,344) – Actuarial gains arising from liability experience (8,046) (72,913) (167,816) (142,338) Benefits paid by the plans (183,501) (281,712) Current service cost 44,067 56,790 Interest cost 16,482 8,310 (122,952) (216,612) At 31 December 1,053,336 1,344,104 The weighted average duration of the Monthly Rated and Daily Rated defined benefit obligations are 7.3 and 4.9 years respectively (2021: 8.5 and 5.6 years respectively).