My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 150 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) 10. INVESTMENT PROPERTIES (CONT’D) 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 Company 31.12.2019 Carrying Amount Office buildings - 132 132 34 (93) 73 Premises - 724 724 872 (907) 689 - 856 856 906 (1,000) 762 Analysed by:- Cost 1,762 Accumulated depreciation (1,000) 762 The comparative information is not presented as the Group has applied MFRS 16 using the modified retrospective approach. (a) The Group leases various office properties and motor vehicles of which the leasing activities are summarised below:- (i) Motor vehicles The Group has leased its motor vehicles under hire purchase arrangements. The leases are secured by the leased assets. The Group has an option to purchase the asset at the expiry of the lease period at an insignificant amount. (ii) Office and communication equipment The Group has leased its office and communication equipment under hire purchase arrangements. The leases are secured by the leased assets. The Group has an option to purchase the asset at the expiry of the lease period at an insignificant amount. (iii) Office buildings The Group has leased a number of office buildings that run between 1 year and 3 years. (iv) Premises The Group has leased a number of premises that run between 1 year and 3 years. (b) The Group also has leases with lease terms of 12 months or less and leases of premises with low value. The Group has applied the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. (c) The Group has several lease contracts for premises that include extension and termination options. These options are negotiated by management to provide flexibility in managing the portfolio of leased asset and align with the Group’s business needs. Management exercises judgement in determining whether these extension and termination options are reasonably certain to be exercised.