MISC Annual Report 2019

13. SHIPS, OFFSHORE FLOATING ASSETS AND OTHER PROPERTY, PLANT AND EQUIPMENT (CONT’D.) Accumulated depreciation/impairment Net book value Effect of At Depreciation Termination Currency At adoption of 1.1.2019 charge for Impairment Reclassification Reclassified to of lease translation At At 1.1.2019 MFRS 16 (Restated) the year losses Disposals Write-offs out of PPE** held for sale contract differences 31.12.2019 31.12.2019 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Group - 31 December 2019 Ships Ships in operation* 21,918,883 – 21,918,883 1,699,991 85,490 (71,552) (354,612) (408) (985,044) – (179,714) 22,113,034 18,327,867 Right-of-use - ships in operation* – 1,795,495 1,795,495 352,764 40,386 – – – – (34,484) (3,657) 2,150,504 352,479 Ships under construction – – – – – – – – – – – – 2,295,581 21,918,883 1,795,495 23,714,378 2,052,755 125,876 (71,552) (354,612) (408) (985,044) (34,484) (183,371) 24,263,538 20,975,927 Offshore floating assets Subject to operating lease as a lessor - offshore floating assets in operation 1,121,122 – 1,121,122 38,108 69,459 – – – (165,345) – (7,886) 1,055,458 82,357 Other property, plant and equipment Freehold land – – – – – – – – – – – – 12,757 Freehold buildings, drydocks and waste plant 601,380 – 601,380 35,871 – (5,519) (3,029) – – – (425) 628,278 1,038,532 Leasehold buildings 24,589 – 24,589 – – – – – – – 17 24,606 49,276 Motor vehicles 17,577 – 17,577 1,127 – (545) (231) – – – (13) 17,915 2,266 Furniture, fittings and equipment 104,868 – 104,868 13,358 – (4,413) (125) – – – (350) 113,338 55,206 Computer software and hardware 266,179 – 266,179 8,822 – (850) (210) – – – (2,521) 271,420 30,847 Projects in progress – – – – – – – – – – – – 607,537 Plant and machineries 333,442 – 333,442 38,878 – (2,751) (6,843) – – – (467) 362,259 323,936 1,348,035 – 1,348,035 98,056 – (14,078) (10,438) – – – (3,759) 1,417,816 2,120,357 Right-of-use assets - office premise, warehouse and wharf – 43,655 43,655 26,425 – – – – – – (249) 69,831 108,331 - computer software and hardware – 230 230 184 – – – – – – – 414 229 – 43,885 43,885 26,609 – – – – – – (249) 70,245 108,560 1,348,035 43,885 1,391,920 124,665 – (14,078) (10,438) – – – (4,008) 1,488,061 2,228,917 Total 24,388,040 1,839,380 26,227,420 2,215,528 195,335 (85,630) (365,050) (408) (1,150,389) (34,484) (195,265) 26,807,057 23,287,201 * Included in ships in operation and right-of-use - ships in operation are ships subject to operating lease as a lessor with a carrying amount of RM14,409,219,000 and RM34,647,392 respectively based on the ships contractual arrangement as at 31 December 2019. Certain ships in operation are used interchangeably between time charter and spot charter during the financial year. ** Reclassification out of PPE relates to capital expenditure which are reimbursable and reclassed to other receivables. NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 NOTES TO THE FINANCIAL STATEMENTS 31 December 2019 FINANCIAL STATEMENTS MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 292 293