Provisions

12 Months Ended

Dec. 31, 2023

Provisions [Abstract]

PROVISIONS

23. PROVISIONS

	2023			2022
	US$			US$
Provision for reinstatement costs		71,872			100,483
Provision for defined benefit obligations		194,260			101,913
As at December 31		266,132			202,396
Provision for reinstatement costs
As at January 1		100,483			68,733
Additional provision		-			26,327
Remeasurement of lease modifications		-			2,231
Settled during the year		(31,782	)		-
Increase in discounted amounts arising from the passage of time		4,009			4,184
Exchange realignment		(838	)		(992	)
As at December 31		71,872			100,483
Portion classified as current liabilities		(71,872	)		(66,118	)
Non-current portion		-			34,365

The Group has certain leases of office properties with clauses of reinstatement of alteration at the end of these leases. The provision for the reinstatement costs of these office properties was estimated based on reinstatement quotes obtained by the Group.

Provision for defined benefit obligations

The Group made provisions for defined benefit obligations in respect of termination benefits and pursuant to applicable labor laws in corresponding jurisdictions. According to the law, employees are entitled to termination benefits upon dismissal or retirement.

The liability for termination of employment is measured using the projected unit credit method. The actuarial assumptions include expected salary increases and discount rates. The amounts are presented based on discounted expected future cash flows using a discount rate determined by reference to market yields at the reporting date on government bonds with a term that is consistent with the estimated term of the termination benefit obligation.

The most recent actuarial valuations of the estimated liabilities for employee benefits were carried out by E. M. Zalamea Actuarial Services, Inc. for the Group’s subsidiaries in the Philippines using the projected unit credit actuarial valuation method for the year ended December 31, 2023 and December 31, 2022.

The principal actuarial assumptions used as at the end of the reporting period are as follows:

	2023		2022
Discount rate (%)		6.15 - 6.19		7.39 - 7.41
Expected rate of salary increases (%)		6.00		6.00

A quantitative sensitivity analysis for significant assumptions as at the end of the reporting period is shown below:

			Increase/					Increase/
			(decrease)					(decrease)
			in defined					in defined
	Increase		benefit			Decrease		benefit
	in rate		obligations			in rate		obligations
	%		US$			%		US$
2023
Discount rate		1		(34,297	)		1		43,440
Future annual salary increases		1		43,349			1		(34,637	)
2022
Discount rate		1		(17,571	)		1		22,380
Future annual salary increases		1		22,477			1		(17,927	)

The sensitivity analysis estimates the impact on defined benefit obligations from reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis is based on changing one assumption at a time, keeping all other assumptions constant, and it may not be representative of an actual change in the defined benefit obligations as it is unlikely that changes in assumptions would occur in isolation from one another.

The total expenses recognized in the consolidated statements of loss and other comprehensive (loss)/income in respect of the plan are as follows:

	2023		2022		2021
	US$		US$		US$
Current service cost		49,109		69,689		152,091
Interest cost		7,563		5,687		4,188
Net benefit expenses recognized in general, administrative and other operating expenses		56,672		75,376		156,279

The movements in the defined benefit obligations classified as non-current liabilities are as follows:  

	2023			2022
	US$			US$
At January 1		101,913			115,532
Current service cost		49,109			69,689
Interest cost		7,563			5,687
Benefits paid		-			(14,402	)
Remeasurement losses/(gains) credited to other comprehensive (loss)/income arising from:
Changes in financial assumptions		41,325			(37,030	)
Experience adjustments		(6,440	)		(28,221	)
Exchange realignment		790			(9,342	)
At December 31		194,260			101,913