2. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (c) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less any accumulated depreciation and any accumulated impairment losses. (ii) Depreciation Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment from the date that they are available for use. Freehold land is not depreciated. Capital work-in-progress are not depreciated until the assets are ready for their intended use. • Buildings and facility system 15 - 50 years • Office renovations 5 - 10 years • Plant and machinery 3 - 8 years • Equipment and motor vehicles 3 - 15 years • Office equipment, furniture and fittings 5 - 10 years • Computer equipment 3 - 10 years • Floating production, storage and offloading (FPSO) and vessel 10 - 20 years • Technology assets 4 years Depreciation of oil and gas assets comprising subsea facilities and equipment is computed based on the unit-ofproduction method using proven and probable developed reserves. (d) Right-of-use assets (i) Lease and non-lease components At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of their relative stand-alone prices. However, for leases of properties in which the Group is a lessee, it has elected not to separate non-lease components and will instead account for the lease and non-lease component as a single lease component. (ii) Recognition exemption The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. It assesses the lease classification of a sublease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sublease as an operating lease. 134 Financial Statements DAGANG NeXCHANGE BERHAD Integrated Report 2024 NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 December 2024
RkJQdWJsaXNoZXIy NDgzMzc=