113 FINANCIAL STATEMENTS & OTHERS ENRA GROUP BERHAD ANNUAL REPORT 2023 Notes To The Financial Statements 31 March 2023 (Cont’d) 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 and marine equipment and they are initially recorded at cost, which comprise the initial amount of the lease liabilities adjusted for any lease payments made at or before the commencement date of the leases. 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 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Non-current Lease liabilities 1,540 1,495 48 - Current Lease liabilities 96 125 93 62 Total lease liabilities 1,636 1,620 141 62 Represented by: Lease liabilities owing to non-financial institutions 1,636 1,620 141 62 (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.
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