NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2023 (cont’d) 5. RIGHT-OF-USE ASSETS (CONT’D) (b) The Group and the Company also have short-term leases with lease terms of 12 months or less and leases of assets with low value at less than RM20,000 each when purchase new. Leases included 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. The Group and the Company have applied the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. (c) Leasehold land and building of the Group amounted to RM12,761,000 (2022: RMNil) has been pledged to a licensed bank as security for banking facilities granted to the Group as disclosed in Note 26 to the financial statements. (d) Material accounting policy information ROU assets are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation of ROU assets are recognised in the profit or loss on straight-line method from the commencement date to the earlier of the end of the useful life of the ROU assets or the end of the lease term. ROU assets under capital work-in-progress are not depreciated until the assets are ready for its intended use. The estimated useful lives of the ROU assets are determined on the same basis as those of property, plant and equipment as follow: Office buildings 2% Premises Over the lease term Office and communication equipment 10 - 12% Motor vehicles 20% Leasehold land Over the lease term 6. DEVELOPMENT COSTS Development costs Intangible assets under development Total RM’000 RM’000 RM’000 Group Cost At 1 January 2022 369,472 - 369,472 Additions 319,955 147,261 467,216 At 31 December 2022 689,427 147,261 836,688 Additions 369,679 98,755 468,434 Foreign translation differences 40 - 40 At 31 December 2023 1,059,146 246,016 1,305,162 ANNUAL REPORT 2023 199 (b) The Group and the Company also have short-term leases with lease terms of 12 months or less and leases (c) Leasehold land and building of the Group amounted to RM12,761,000 (2022: RMNil) has been pledged to a (d) Material accounting policy information FINANCIAL STATEMENTS
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