147 4. LEASES The Group leases certain land and buildings, building space, offices, equipment and vehicles. The leases are between more than 1 year and 99 years and may have options to renew after expiry. Lease payments are renegotiated at the end of lease terms or periodically to reflect market rentals. (a) Right-of-use assets Group Note Land and buildings Equipment Motor vehicles Total RM’mil RM’mil RM’mil RM’mil At 1 January 2023 6,518 167 – 6,685 Acquisitions through business combinations 37 – – 37 Disposal (39) – – (39) Additions 181 29 – 210 Modification/reassessment 156 1 – 157 Depreciation charge for the year (363) (23) (5) (391) Transfer to assets classified as held for sale – (1) – (1) Transfer from property, plant and equipment 3 13 – – 13 Hyperinflationary adjustments (42) 96 5 59 Translation differences 384 5 – 389 At 31 December 2023/ 1 January 2024 6,845 274 – 7,119 Acquisitions through business combinations 284 – – 284 Additions 239 7 – 246 Modification/reassessment 363 (1) 22 384 Depreciation charge for the year (410) (20) (4) (434) Transfer to investment properties 5 (84) – – (84) Hyperinflationary adjustments 45 114 (3) 156 Translation differences (288) (2) 1 (289) Translation adjustments^ 167 – – 167 At 31 December 2024 7,161 372 16 7,549 ^ Arises from the application of functional currencies to translate certain acquired assets in prior years. Extension options Some properties, equipment and motor vehicles leases contain extension options exercisable by the Group before the end of the non-cancellable contract period. Where applicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at lease commencement whether it is reasonably certain to exercise the extension options. The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control. Significant judgements and assumptions in relation to lease The Group assesses at lease commencement by applying significant judgement, whether it is reasonably certain to exercise the extension options. Group entities consider all facts and circumstances, including their past practice and any cost that will be incurred to change the asset if an option to extend is not taken, to help them determine the lease term. The Group also applied judgement and assumptions in determining the incremental borrowing rate of the respective leases. Group entities first determine the closest available borrowing rates before using significant judgement to determine the adjustments required to reflect the term, security, value or economic environment of the respective leases.
RkJQdWJsaXNoZXIy NDgzMzc=