DESTINI Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS 2. Basis of Preparation (Cont’d) (a) Statement of compliance (Cont’d) Adoption of new and amended standards (Cont’d) MFRS 16 Leases (Cont’d) Impact arising from the adoption of MFRS 16 on the financial statements: As at 1 January, previously stated MFRS 16 adjustments As at 1 January, restated RM RM RM Group Property, plant and equipment 108,087,938 (18,917,902) 89,170,036 Right-of-use assets - 38,145,281 38,145,281 Finance lease payables (2,447,516) 2,447,516 - Lease liabilities - (21,795,356) (21,795,356) Retained earnings (111,859,274) 120,461 (111,738,813) Company Property, plant and equipment 27,407,948 (766,281) 26,641,667 Right-of-use assets - 766,281 766,281 The weighted average incremental borrowing rates applied to lease liabilities on 1 January 2019 were 5.00% and 5.50%. FINANCIAL STATEMENTS 06 ANNUAL REPORT 2019 107