MKH Annual Report 2017

20. PROPERTY DEVELOPMENT COSTS The Group 2017 2016 RM RM At cost: Freehold land At beginning of year 129,253,132 122,735,500 Additions 2,437,435 15,938,828 Transfer from land held for property development (Note 17) 40,745,028 23,972,114 Transfer to inventories (19,496,482) (4,905,266) Adjustment on completion of projects (42,318,176) (28,488,044) At end of year 110,620,937 129,253,132 Leasehold land At beginning of year 179,537,672 249,955,242 Additions 476,488 54,600,436 Reversal of provision for landowners’ entitlement (744,462) - Transfer from prepayments (Note 19 (j) (ii)) - 3,107,300 Transfer from/(to) land held for property development (Note 17) 115,446,844 (55,694,634) Transfer to inventories (20,992,035) (1,622,640) Adjustment on completion of projects (45,226,011) (70,808,032) At end of year 228,498,496 179,537,672 Development costs At beginning of year 496,365,587 435,082,958 Additions 405,275,857 539,675,524 Transfer from prepayments (Note 19 (j) (ii)) - 436,098 Transfer from land held for property development (Note 17) 51,523,091 8,221,086 Transfer to inventories (82,018,190) (54,815,831) Adjustment on completion of projects (339,954,973) (432,234,248) At end of year 531,191,372 496,365,587 Total land and development costs 870,310,805 805,156,391 Less: Costs recognised as an expense in profit or loss At beginning of year 420,157,582 369,818,829 Additions 402,683,106 581,869,077 Adjustment on completion of projects (427,499,160) (531,530,324) At end of year 395,341,528 420,157,582 474,969,277 384,998,809 Notes to the Financial Statements For the Financial Year ended 30 September 2017 157 MKH Berhad • Annual Report 2017