rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related employee benefits obligations. • Medical claim inflation rate The medical claim inflation rate for general practitioner, hospitalisation, specialist and dialysis medical claims, as determined by the Group and the Company are based on the annualised increase in average claims over the past 5 years. • Salary increment rate The salary increment rate for employees receiving the Retirement Benefit Plan as determined by the Group and the Company is based on the average salary increment rate for the past 13 years and considerations for price inflation, real salary increase, promotions and Collective Agreement (‘CA’) negotiation. 5 PROPERTY, PLANT AND EQUIPMENT(‘PPE’) Accounting Policy PPE are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the construction or acquisition of the items and bringing them to the location and condition so as to render them operational in the manner intended by the Group and the Company and allocated according to its components. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the items can be measured reliably. The carrying amount of the replaced part is derecognised. The cost of major overhaul/inspection is recognised in the asset’s carrying amount as a replacement and the remaining carrying amount of the previous major overhaul/inspection is derecognised. Major spare parts and standby equipment are recognised as assets when the Group and the Company expect to use for more than one period. Similarly, if the spare parts and servicing equipment can be used only in connection with an item of PPE, they are accounted for as PPE. Gains or losses on disposal of PPE are determined by reference to