FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 74 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) Property, Plant and Equipment All items of property, plant and equipment are initially measured at cost. Subsequent to initial recognition, all property, plant and equipment, other than freehold land, are stated at cost less accumulated depreciation and any impairment losses. Freehold land is not depreciated. Depreciation on other property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over the estimated useful lives. The principal annual depreciation rates are: Freehold buildings 25 - 50 years Long-term leasehold buildings 60 years Land improvement 14% Factory and of ce renovation 5% - 10% Plant and machinery 10% - 20% Workshop tools 10% - 20% Of ce equipment 10% - 33.3% Furniture and ttings 10% - 33.3% Motor vehicles 10% - 20% Computers 33.3% Investments in Subsidiaries Investments in subsidiaries, which are eliminated on consolidation, are stated in the separate nancial statements of the Company at cost less impairment losses, if any. Right-of-use Assets and Lease Liabilities (i) Short-term Leases and Leases of Low-value Assets The Group and the Company apply the “short-term lease” and “lease of low-value assets” recognition exemption. For these leases, the Group and the Company recognise the lease payments as an operating expense on a straight-line method over the term of the lease unless another systematic basis is more appropriate. (ii) Right-of-use Assets Right-of-use assets are initially measured at cost. Subsequent to the initial recognition, the right-of-use assets are stated at cost less accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of lease liabilities. The right-of-use assets are depreciated using the straight-line method from the commencement date to the earlier of the end of the estimated useful lives of the right-of-use assets or the end of the lease term.
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