Chemical Company of Malaysia Berhad Annual Report 2019

3. Property, plant and equipment (continued) 3.2 Change in estimates During the financial year ended 31 December 2019, the Group and the Company reviewed the remaining useful life of its assets. As a result, expected useful lives of some application systems and equipment are shortened and impaired, which resulted in recognition of additional depreciation expense and impairment loss totalling RM1,826,000 in the current financial year. 3.3 Transfer to investment properties During the financial year ended 31 December 2019, the Group transferred land and building to investment properties because they were no longer used by the Group. Before the transfer, the Group remeasured the land and building at fair value and recognised a revaluation gain of RM4,168,000 in revaluation reserve. The valuation techniques and significant unobservable inputs used in measuring the fair value of the land and building at the date of transfer were the same as those applied to investment properties at the reporting date (see Note 5). 4. Right-of-use assets Leasehold land Buildings Plant, machinery and equipment Total Group At 1 January 2019 31,719 2,677 239 34,635 Depreciation (652) (1,776) (92) (2,520) At 31 December 2019 31,067 901 147 32,115 Buildings Company At 1 January 2019 1,301 Depreciation (1,115) At 31 December 2019 186 The Group and the Company lease a number of office buildings and factory equipments that run between 1 – 3 years, with an option to renew the lease after that date. BUSINESS OVERVIEW OTHER INFORMATION GOVERNANCE STRUCTURE 155 ANNUAL REPORT 2019 FINANCIAL STATEMENTS