MISC Integrated Annual Report 2020

4. OTHER OPERATING INCOME Group Corporation 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Rental income 61 81 – – Exchange gain: Realised 7,981 15 9,130 – Unrealised 9,260 7,485 12,043 8,789 Management services: Subsidiaries – – 2,601 2,053 Joint ventures 9,301 4,722 9,301 4,722 Gain from liquidation of a subsidiary – – – 151,869 Dividend income from equity investment: Subsidiaries – – 1,382,324 1,283,518 Joint ventures – – 221,371 207,769 Quoted equity investments 1,074 1,562 1,074 1,693 Unquoted equity investments 13 10 13 10 Writeback of impairment loss on: (Note 22) - Trade and other receivables – – 136 – - Finance lease receivables 8,878 5,455 814 369 Cadet course fees 11,845 13,718 – – Government grants* 7,790 – – – Miscellaneous income from: Subsidiaries – – 13,692 7,290 Fellow subsidiaries 15,544 43,987 – 1,568 Third parties 69,934 41,818 16,287 23,415 141,681 118,853 1,668,786 1,693,065 * In response to the COVID-19 pandemic, the Government of Singapore introduced Jobs Support Scheme (JSS) as a wage support to employers to retain their local employees during this period of economic uncertainty. The grant was recognised in profit or loss as the related wages and salaries were recognised. 5. (LOSS)/PROFIT BEFORE TAXATION The following amounts have been included in arriving at (loss)/profit before taxation: Group Corporation 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Amortisation of intangible assets (Note 16) 5,884 6,373 – – Amortisation of prepaid lease payments on land and buildings (Note 15) 7,359 7,405 100 124 Amortisation of upfront fees 21,531 26,188 – – Auditors’ remuneration: Auditors of the Corporation: - Statutory audits 4,888 4,423 824 824 - Other services 1,013 1,119 769 886 Inventories used (Note 21) 730,514 915,284 – – Fair value movement in other investments 6,953 5,175 6,953 5,175 Exchange loss: - Realised 19,726 19,669 12,745 14,902 - Unrealised 4,355 9,121 7,295 5,357 Impairment loss for: (Note 22) - Trade and other receivables 34,563 36,839 13,915 22,019 Bad debts written off 6,120 1,065 – 524 Operating lease rental:* - Ships 177,196 257,384 – – - Equipment 18,578 10,462 2,993 548 - Land and buildings 23,854 27,916 2,639 3,787 Ships, offshore floating assets, other property, plant and equipment and right-of-use assets: (Note 14) - Depreciation 2,090,970 2,215,528 366,673 365,692 - Written off 23,639 13,189 95 525 Impairment provisions (Note 5(a)) 331,376 214,943 37,071 101,407 Staff costs (Note 6) 1,775,287 1,765,161 270,419 243,914 Non-executive directors’ remuneration (Note 7) 1,739 1,567 1,185 1,039 Changes in fair value of hedging derivatives 3,235 – – – * The Group leases ships, equipment, land and buildings. These leases are short term and/or leases of low-value assets. The Group has elected not to recognise right-of-use assets and lease liabilities for these leases. 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 NOTES TO THE FINANCIAL STATEMENTS 10 366 10 367 /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// /// Leadership / Governance / Financial Statements / Additional Information / Annual General Meeting ////// Section Section MISC Berhad / Integrated Annual Report 2020 MISC Berhad / Integrated Annual Report 2020