MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 247 Financial Statements 19. FINANCE LEASE ASSETS UNDER CONSTRUCTION The finance lease assets under construction relates to progress payments made in respect of ships under construction for which charter contracts classified as finance leases have been entered into with a lessee. The movement of the finance lease assets under constructions are as follows: Group and Corporation 2017 RM'000 2016 RM'000 At 1 January 1,417,983 1,256,005 Additions 1,254,966 1,006,393 Transfer to finance lease receivables (Note 18(d)) (1,885,440) (908,220) Currency translation differences (99,020) 63,805 At 31 December 688,489 1,417,983 Included in additions to the finance lease assets under constructions of the Group and the Corporation is finance costs capitalised during the year of RM9,689,000 (2016: RM8,501,000). 20. INVENTORIES Group Corporation 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM'000 At cost Bunkers, lubricants and consumable stores 149,844 141,830 210 3,220 Spares 46,349 59,566 1,259 17,544 Raw materials 2,399 12,072 - - Work-in-progress * - - 19,846 4,819 198,592 213,468 21,315 25,583 The cost of inventories recognised as cost of sales during the financial year of the Group and the Corporation were RM932,475,000 (2016: RM812,854,000) and RM68,819,000 (2016: RM119,953,000) respectively. * Work-in-progress relates to cost incurred to-date for an asset under construction that will be disposed to a subsidiary upon its completion.