ENRA Group Berhad | Annual Report 2022 108 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2022 5. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Cont’d) The Group and the Company as lessee (Cont’d) (a) Right-of-use assets (Cont’d) (i) The right-of-use assets comprise leasehold land, buildings, motor vehicles, office equipment, marine equipment and vessel and they are initially recorded at cost. Subsequent to initial recognition, the right-of-use assets are measured at cost less any accumulated amortisation, accumulated impairment losses and adjusted for any remeasurement of lease liabilities. (ii) The right-of-use assets are depreciated on the straight-line basis over the earlier of the estimated useful lives of the right-of-use assets or the end of the lease term. The lease terms of right-of-use assets are as follows: Leasehold land Up to 69 years Buildings 2 to 5 years Motor vehicles 5 years Office equipment 3 to 5 years Marine equipment 2 years (b) Lease liabilities Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Non-current Lease liabilities 1,495 1,739 – – Current Lease liabilities 125 922 62 46 Total lease liabilities 1,620 2,661 62 46 Represented by: Lease liabilities owing to financial institutions – 72 – 2 Lease liabilities owing to non-financial institutions 1,620 2,589 62 44 Total lease liabilities 1,620 2,661 62 46 (i) The lease liabilities are initially measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the entities’ incremental borrowing rate. Subsequent to the initial recognition, the Group and the Company measure the lease liability by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect lease payments made, and remeasuring the carrying amount to reflect any reassessment or lease modifications.
RkJQdWJsaXNoZXIy NDgzMzc=