EXCEL FORCE MSC BERHAD Annual Report 2020

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2020 94 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CONT’D) 19. LEASE LIABILITIES Group and Company 2020 2019 RM RM At 1 January 353,091 - Effect of adoption of MFRS 16 - 728,386 At 1 January 2019, restated 353,091 728,386 Addition 1,032,562 - Accretion of interest 9,182 19,511 Payments (389,518) (394,806) At 31 December 1,005,317 353,091 Presented as: Non-current 672,117 - Current 333,200 353,091 1,005,317 353,091 The maturity analysis of lease liabilities of the Group and of the Company at the end of the reporting period are as follows: Group and Company 2020 2019 RM RM Within one year 363,074 359,262 Later than one year and not later than two years 363,074 - Later than two years and not later than five years 332,819 - 1,058,967 359,262 Less: Future finance charges (53,650) (6,171) Present value of lease liabilities 1,005,317 353,091 The Group leases buildings and computer equipment. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The weighted average incremental borrowing rate applied to lease liabilities at the reporting was 3.5% (2019: 3.5%). 20. TRADE PAYABLES The normal trade credit term granted to the Group and to the Company range from 30 to 90 days (2019: 30 to 90 days) depending on the terms of the contracts.