15. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES The Group and the Company have lease contracts for leasehold land, office premises and motor vehicles used in its operations. Leases of premises generally have lease terms between 2 and 15 years, while motor vehicles have lease terms between 2 to 3 years. The Group and the Company have several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s and the Company’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 also has leases with lease terms of 12 months or less and leases of office equipment with low value. The Group and the Company apply the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year: Group Leasehold land RM’000 Office premises RM’000 Motor vehicles RM’000 Total RM’000 As at 1 January 2022 4,698 32,491 92 37,281 Additions – 20,920 156 21,076 Depreciation (Note 7) (98) (13,394) (134) (13,626) Derecognition – (559) – (559) Foreign exchange differences – 74 – 74 As at 31 December 2022 4,600 39,532 114 44,246 As at 1 January 2021 4,818 35,736 273 40,827 Additions – 9,219 338 9,557 Depreciation (Note 7) (120) (10,244) (519) (10,883) Derecognition – (2,287) – (2,287) Foreign exchange differences – 67 – 67 As at 31 December 2021 4,698 32,491 92 37,281 15. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (CONTD.) Company Leasehold land RM’000 Office premises RM’000 Total RM’000 As at 1 January 2022 2,963 28,443 31,406 Additions – 11,644 11,644 Depreciation (Note 7) (34) (10,821) (10,855) As at 31 December 2022 2,929 29,266 32,195 As at 1 January 2021 2,997 30,964 33,961 Additions – 6,856 6,856 Derecognition – (2,287) (2,287) Depreciation (Note 7) (34) (7,090) (7,124) As at 31 December 2021 2,963 28,443 31,406 As at 31 December 2022, leasehold land with an aggregate carrying value of RM2.0 million (2021: RM1.9 million) are pledged as securities for banking facilities (Note 35(a)). Set out below are the carrying amounts of lease liabilities and the movements during the year: Group Company 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 As at 1 January 33,619 37,575 29,395 31,557 Additions 21,667 9,557 11,644 6,856 Accretion of interest (Note 6) 1,204 1,541 901 1,212 Amount billed (14,438) (12,768) (11,339) (7,852) Derecognition (1,054) (2,378) – (2,378) Foreign exchange differences (44) 92 – – As at 31 December 40,954 33,619 30,601 29,395 Disclosed as: – Current 12,744 8,599 9,700 6,818 – Non-current 28,210 25,020 20,901 22,577 40,954 33,619 30,601 29,395 p.316 p.317 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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