PRG Holdings Berhad Annual Report 2020

27. LEASE LIABILITIES The Group as lessee Long-term leasehold Plant and Motor land Buildings machinery vehicles Total Group RM’000 RM’000 RM’000 RM’000 RM’000 Carrying amount Balance as at 1 January 2020 2,535 17,314 126 190 20,165 Additions - 97 - - 97 Acquisition of subsidiaries (Note 11) - 518 - - 518 Lease payments (162) (2,373) (128) (67) (2,730) Interest expense 91 1,281 2 6 1,380 Re-measurement - 495 - - 495 Lease concession - (2,799) - - (2,799) Translation adjustments (46) 2 - - (44) Balance as at 31 December 2020 2,418 14,535 - 129 17,082 Carrying amount Balance as at 1 January 2019 - - - - - Effects of adoption of MFRS 16 4,818 1,390 629 210 7,047 Additions - 16,900 - 241 17,141 Acquisition of subsidiaries (Note 11) - 500 - - 500 Lease payments (278) (2,388) (527) (154) (3,347) Interest expense 167 916 24 17 1,124 Translation adjustments (90) (4) - - (94) Reclassification to liabilities directly associated with assets held for sale (Note 28) (2,082) - - (124) (2,206) Balance as at 31 December 2019 2,535 17,314 126 190 20,165 2020 2019 Represented by: RM’000 RM’000 Current liabilities 4,605 4,059 Non-current liabilities 12,477 16,106 17,082 20,165 Lease liabilities owing to financial institutions 129 316 Lease liabilities owing to non-financial institutions 16,953 19,849 17,082 20,165 (a) The Group has certain leases of assets with lease term of 12 months or less, and low value leases of office equipment of RM20,000 and below. The Group applies the “short-term lease” and “lease of low-value assets” exemptions for these leases. (b) During the financial year, the Group had total cash outflow for leases of RM2,730,000 (2019: RM3,347,000). PRG HOLDINGS BERHAD 156 Notes to the Financial Statements 31 December 2020 cont’d