MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 223 Financial Statements 12. SHIPS, OFFSHORE FLOATING ASSETS AND OTHER PROPERTY, PLANT AND EQUIPMENT (CONT'D.) (b) Recoverable amount determined from fair value less costs of disposal The fair values of certain ships and offshore floating assets were determined based on valuation performed by an independent valuer based on comparable ships and offshore floating assets adjusted for the current condition of the assets. The fair value measurement was categorised as Level 3 fair value as defined in Note 2.3(aa). Impairment of RM572,301,000 (2016: RM4,093,000) and RM227,431,000 (2016: RMNil) for the Group and the Corporation respectively were recognised using this basis. 13. PREPAID LEASE PAYMENTS ON LAND AND BUILDINGS Group Corporation 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM'000 At 1 January 227,752 238,208 4,305 4,234 Amortisation for the year (Note 5) (7,223) (7,518) (129) (108) Disposal of a subsidiary - (3,117) - - Currency translation differences (401) 179 (401) 179 At 31 December 220,128 227,752 3,775 4,305 Analysed as: Leasehold land 216,353 223,447 - - Leasehold buildings 3,775 4,305 3,775 4,305 220,128 227,752 3,775 4,305 Included in leasehold land of the Group is the carrying value of a long term leasehold and foreshore land of a subsidiary of RM216,353,000 (2016: RM223,447,000) which cannot be disposed off, charged or subleased without the prior consent of the Johor State Government.