GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 115 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 20. INVENTORIES Group Company 2018 2017 2018 2017 RM RM RM RM At cost EDC equipment 13,794,235 970,867 - - Prepaid airtime PINS 61,130,238 61,361,576 - - Others 4,163,280 1,192,035 558,968 617,519 79,087,753 63,524,478 558,968 617,519 (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 RM94,990,420 and RM318,980 (2017: RM11,331,488 and RM3,722,760) respectively. (c) In addition, the amounts recognised in the other operating expenses include the following: Group Company 2018 2017 2018 2017 RM RM RM RM Inventories written off 23,494 122,759 23,494 - (d) During the financial year, inventories of the Group amounting to RM21,310 (2017: RM19,537) are written back due to the sales of inventories previously written off. (e) During the financial year, inventories of the Group amounting to RM19,446,041 (2017: RM549,980) have been capitalised as property, plant and equipment as disclosed in Note 12 to the financial statements as the inventories are no longer held for sale.