220 MKH BERHAD | ANNUAL REPORT 2023 21. PROPERTY DEVELOPMENT COSTS (CONT’D) The Group 2023 2022 RM RM Development costs At beginning of year 560,420,037 576,321,452 Additions 353,428,843 297,162,277 Reclassify from freehold land 3,181,716 - Transfer from land held for property development (Note 18) 3,010,376 8,787,849 Transfer to inventories (5,662,379) (15,319,638) Reversal of completed projects (189,005,913) (306,531,903) At end of year 725,372,680 560,420,037 Total land and development costs 1,080,616,980 963,237,695 Less: Provision for foreseeable loss At beginning of year - - Additions (Note 5) 2,080,070 - At end of year (2,080,070) - Less: Costs recognized as an expense in profit or loss At beginning of year 488,872,973 480,123,685 Additions 416,669,437 358,521,680 Reversal of completed projects (209,279,757) (349,772,392) At end of year (696,262,653) (488,872,973) 382,274,257 474,364,722 Included in the above are: (i) titles of freehold land amounting to RM7,535,948 (2022: RM7,652,171) which have been pledged with a financial institution for term loan facility granted to certain subsidiaries as disclosed in Note 33; (ii) freehold land amounting to RM36,320,494 (2022: RM21,052,277) have been deposited with a financial institution for term loan facilities granted to a subsidiary as disclosed in Note 33; and (iii) freehold and leasehold land amounting to RM268,173,682 (2022: RM325,279,655) represent entitlements of the landowners pursuant to joint venture and joint land development agreements to undertake property development projects. The titles to the development land will be transferred from landowners to the property purchasers. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023
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