NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024 (CONT’D) 4. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) 4.7 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONT’D) (c) Lease Liabilities L ease 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 modifications. 4.8 INVENTORIES I nventories are stated at the lower of cost and net realisable value. Cost and net realisable value are determined as below:- (a) Properties Held for Future Development Property held for future development is stated at the lower of cost and net realisable value. T he cost comprises specifically identified cost, including cost associated to the purchase of land and an appropriate proportion of common infrastructure costs. N et realisable value represents the estimated selling price of intended properties that to be developed less the estimated costs of completion and the estimated costs necessary in selling the properties. If future development layout plan is not available, the replacement cost of the properties held for future development will be the best available measure of the net realisable value. P roperties held for future development for which no significant development work has been undertaken or where development activities are not expected to be completed within the normal operation cycle is classified as noncurrent asset. P roperties held for future development is transferred to ‘properties under development for sale’ category when development activities have commenced and are expected to be completed within the Group’s normal operating cycle. (b) Properties Under Development for Sale Property under development for sale is stated at the lower of cost and net realisable value. T he cost comprises specifically identified cost, including cost associated to the purchase of land, conversion fees, aggregate cost of development, materials and supplies, wages and other direct expenses and an appropriate proportion of common infrastructure costs less cumulative amounts recognised as expenses in profit or loss. N et realisable value represents the estimated selling price less the estimated costs of completion and the estimated costs necessary in selling the property. FINANCIAL STATEMENTS MATRIX CONCEPTS HOLDINGS BERHAD 162
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