Frontken Berhad Annual Report 2019

136 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2019 34. INITIAL APPLICATION OF MFRS 16 (CONT’D) (a) Lessee Accounting (Cont’d) For leases that were classified as finance leases, the Group has recognised the carrying amount of the leased asset and lease liability immediately before 1 January 2019 as the carrying amount of the right-of-use asset and the lease liability as at the date of initial application. The following table explains the difference between the operating lease commitments disclosed in the last financial year (determined under MFRS 117) and the lease liabilities recognised at 1 January 2019:- The Group The Company RM RM Operating lease commitment as at 31 December 2018 as disclosed in last financial year 15,587,403 - Less: Exemption for short-term leases (1,445,544) - 14,141,859 - Discounted using the incremental borrowing rate as at 1 January 2019 10,362,387 - Add: Finance lease liabilities recognised as at 31 December 2018 2,203,530 - Existing contracts assessed to be contained a lease under MFRS 16 1,575,942 189,912 Lease liabilities recognised as at 1 January 2019 14,141,859 189,912 35. COMPARATIVE FIGURES The following figures have been reclassified to conform with the presentation of the current financial year:- As Previously Reported As Restated RM RM The Group Consolidated Statements of Comprehensive Income and Other Comprehensive Income (Extract):- Administrative expenses (45,053,083) (44,130,245) Net impairment losses on financial assets - (922,838) Statements of Financial Position (Extract):- Reserves 206,115,178 206,778,415 Treasury shares - (663,237) Notes To The Financial Statements (cont’d)