15. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES The Group and the Company have lease contracts for leasehold land, office premises and motor vehicles used in its operations. Leases of premises generally have lease terms between 2 and 10 years, while motor vehicles have lease terms between 2 to 3 years. The Group and the Company have several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s and the Company’s business needs. Management exercises judgement in determining whether these extension and termination options are reasonably certain to be exercised. The Group and the Company also has leases with lease terms of 12 months or less and leases of office equipment with low value. The Group and the Company apply the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year: Group Leasehold land RM’000 Office premises RM’000 Motor vehicles RM’000 Total RM’000 As at 1 January 2024 4,484 31,029 93 35,606 Additions – 9,505 271 9,776 Depreciation (Note 7) (105) (14,947) (138) (15,190) Derecognition – (1,189) – (1,189) Effect of lease modification – 932 – 932 Foreign exchange differences – (370) – (370) As at 31 December 2024 4,379 24,960 226 29,565 As at 1 January 2023 4,600 39,532 114 44,246 Additions – 7,191 75 7,266 Acquisition of a subsidiary – 305 – 305 Depreciation (Note 7) (116) (14,770) (96) (14,982) Derecognition – (1,674) – (1,674) Foreign exchange differences – 445 – 445 As at 31 December 2023 4,484 31,029 93 35,606 Notes to the Financial Statements For the year ended 31 December 2024 UEM EDGENTA BERHAD 318 Integrated Annual Report 2024
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