My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 149 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) FINANCIAL STATEMENTS 10. INVESTMENT PROPERTIES (CONT’D) (a) The investment properties of the Group are leased to customers under operating leases with rentals payable monthly. The leases contain initial non-cancellable periods ranging from 3 to 4 years. As at the reporting date, the future minimum rentals receivable under the non-cancellable operating leases are as follows:- The Group The Company 31.12.2019 31.12.2019 RM’000 RM’000 Within 1 year 1,422 5,782 Between 1 and 2 years 847 4,799 Between 2 and 3 years 363 4,170 Between 3 and 4 years - 3,117 2,632 17,868 The comparative information is not presented as the Group has applied MFRS 16 using the modified retrospective approach. (b) Certain buildings have been pledged to a licensed bank as security for banking facilities granted to the Group as disclosed in Note 31 to the financial statements. (c) The fair values of the investment properties are within level 2 of the fair value hierarchy and are arrived at by reference to market evidence of transaction prices for similar properties, locations and category of properties. The most significant input into this valuation approach is the price per square foot of comparable properties. There have been no changes in the valuation technique during the financial period. (d) Investment properties of the Company comprise buildings that are leased to companies within the Group to earn rental income. They are accounted for as property and equipment at the Group. 11. RIGHT-OF-USE ASSETS 1.10.2018 As Previously Reported Initial Application of MFRS 16 As Restated Additions Depreciation Charges (Note 40) At 31.12.2019 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 The Group 31.12.2019 Carrying Amount Motor vehicles - 2,157 2,157 - (1,079) 1,078 Office and communication equipment - 2,081 2,081 - (480) 1,601 Office buildings - 1,066 1,066 588 (822) 832 Premises - 3,919 3,919 8,092 (4,899) 7,112 - 9,223 9,223 8,680 (7,280) 10,623 Analysed by:- Cost 21,668 Accumulated depreciation (11,045) 10,623