MSM Malaysia Holdings Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 18 RIGHT-OF-USE ASSETS (CONTINUED) Leasehold Land Building Total RM’000 RM’000 RM’000 Group 2018 Cost At 1 January 2018 – effects of adoption of MFRS 16 (Note 41) 209,662 10,064 219,726 Additions - 645 645 At 31 December 2018 209,662 10,709 220,371 Accumulated depreciation At 1 January 2018 – effects of adoption of MFRS 16 (Note 41) 22,531 2,295 24,826 Charge for the financial year 4,064 1,267 5,331 At 31 December 2018 26,595 3,562 30,157 Net book value At 31 December 2018 183,067 7,147 190,214 Net book value At 1 January 2018 187,131 7,769 194,900 Total cash outflow for leases of the Group is as follows: Group 2019 2018 RM’000 RM’000 Rental of short term assets 4,702 5,639 Principal payments of lease liabilities 1,301 1,315 Interest payment of lease liabilities 315 363 6,318 7,317 Net book value of the assets pledged as security to borrowings for the Group and Company is RM81,589,000 (2018: RM82,429,000). 177 FINANCIAL STATEMENTS 08

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