MSM Malaysia Holdings Berhad Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 29 ASSETS HELD FOR SALE The Group had entered into a sale and purchase agreement with F&N Agrivalley Sdn Bhd (“F&N”) on 8 October 2019 to dispose its leasehold agriculture land located at Chuping, Perlis and the 281 staff quarters located on the leasehold agriculture land. The Company received a deposit amounting to RM10,895,000 for the sale of leasehold agriculture land to F&N and this amount had been recognised in ‘Payables’ as at 31 December 2019. As at 31 December 2019, the conditions precedent stipulated in the sale and purchase agreement has yet to be fulfilled. The assets held for sale are written down to their fair value less costs to sell of RM156,000,000 as stipulated in the agreement with F&N. The details are as follows: Bearer plant - Building, oil palm, furniture Leasehold rubber, Plant and and office land and mango machinery equipment Total Group RM’000 RM’000 RM’000 RM’000 RM’000 2019 As at 1 January 2019 - - - 2,027 2,027 Transferred from property, plant and equipment (Note 17) - 72,461 181 3,582 76,224 Transferred from right-of-use assets (Note 18) 81,538 - - - 81,538 Written-off during the year - - - (480) (480) Impairment loss during the year (1,762) - - - (1,762) As at 31 December 2019 79,776 72,461 181 5,129 157,547 Bearer plant - Building, oil palm, furniture Leasehold rubber, Plant and and office land and mango machinery equipment Total Group RM’000 RM’000 RM’000 RM’000 RM’000 2018 Property, plant and equipment at net book value at 1 January 2018 - - - - - Transferred from property, plant and equipment (Note 17) - - - 2,027 2,027 At 31 December 2018 - - - 2,027 2,027 197 FINANCIAL STATEMENTS 08