GHL System Berhad Annual Report 2017

GHL SYSTEMS BERHAD 102 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 18. INVENTORIES Group Company 2017 2016 2017 2016 RM RM RM RM At cost EDC equipment 970,867 7,642,972 - - Prepaid airtime PINS 61,361,576 72,861,768 - - Others 1,192,035 2,989,286 617,519 874,320 63,524,478 83,494,026 617,519 874,320 (a) Cost of inventories is determined using the first-in, first-out formula. (b) During the financial year, inventories of the Group and of the Company other than prepaid airtime PINS recognised as cost of sales amounted to RM11,331,488 and RM3,722,760 (2016: RM12,017,866 and RM412,196) respectively. (c) In addition, the amounts recognised in the other operating expenses include the following: Group Company 2017 2016 2017 2016 RM RM RM RM Inventories written off 122,759 473,428 - 364,890 (d) During the financial year, inventories of the Group and of the Company amounting to RM19,357 (2016: RM Nil) and RM19,357 (2016: RM Nil) were written back due to the sales of inventories previously written off. (e) During the financial year, inventories of the Group amounting to RM549,980 (2016: RM19,527,793) have been capitalised as property, plant and equipment as disclosed in Note 11 to the financial statements as the inventories are no longer held for sale.