FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 75 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) Right-of-use Assets and Lease Liabilities (Cont’d) (iii) Lease Liabilities Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the entities’ incremental borrowing rate. Subsequent to the initial recognition, the lease liabilities are measured at amortised cost and adjusted for any lease reassessment or modi cations. Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined on the rst-in, rst-out method and comprises all costs of purchase plus other costs incurred in bringing the inventories to their present location and condition. 4. OPERATING SEGMENTS The Group has one reportable segment as the Group is principally engaged in one business segment which is the provision of engineering services. The Group Chief Executive Of cer (the chief operating decision maker) review internal management report at least on a quarterly basis. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and expenses. Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period. The Group is organised into the following geographical segments: - Malaysia - Singapore - Philippines - Taiwan - Indonesia
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