the treatment of the tax recoverable balance and the potential tax liabilities. INDEPENDENT AUDITORS’ REPORT To The Members of Tenaga Nasional Berhad (Incorporated In Malaysia) (Registration No. 199001009294 (200866-W)) TENAGA NASIONAL BERHAD Integrated Annual Report 2023 366 REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters (continued) Key audit matters How our audit addressed the key audit matters Assessment on carrying value of post-employment benefits Refer to Note 4 – Critical Accounting Estimates and Judgements and Note 24 – Employee Benefits As at 31 December 2023, the Group recorded post-employment benefit asset of RM147.1 million and post-employment benefit liabilities of RM12,371.1 million while the Company recorded post-employment benefit asset of RM147.1 million and post-employment benefit liabilities of RM11,613.7 million. Management assessed the present value of post-employmentbenefit plans by relying on the actuarial valuation reports from an actuary. The actuarial valuation reports estimated the present value of post-employment benefit plans based on key assumptions that comprised expected rate of salary increases, medical cost inflation and discount rates. We focused on this area because of the significant estimates made by management in determining the present value of post-employment benefit plans. We performed the following audit procedures: • Obtained an understanding of the terms and conditions of the post-employment benefit plans; and • Tested the present value of post-employment benefit plans based on the actuarial valuation reports by performing the following: - Discussed with the actuary on the valuation method used and checked that the valuation method is acceptable in accordance with MFRS 119 "Employee Benefits"; - Discussed with the actuary on the key assumptions used in the actuarial valuation and checked the reasonableness by comparing to historical data; - Checked the reasonableness of the discount rates with the assistance of our valuation experts by