Page 192 - MSM_AR2020

CHAIRMAN’S DELIVERING MSM MANAGEMENT DISCUSSION GROUP FINANCIAL
STATEMENT VALUE OVERVIEW & ANALYSIS REPORT

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

18 RIGHT-OF-USE ASSETS
Leasehold
Group land Building Total
RM’000 RM’000 RM’000
2020

Cost
At 1 January 110,437 10,709 121,146
Transfer from asset held for sale (Note 29) 99,225 - 99,225
Transfer to asset held for sale (Note 29) (108,673) - (108,673)
190 Lease modification - (3,301) (3,301)
Lease expiry - (1,209) (1,209)
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
At 31 December 2020 100,989 6,199 107,188

Accumulated depreciation
At 1 January 2020 12,067 4,937 17,004
Charge for the financial year 4,877 798 5,675
Transfer from asset held for sale (Note 29) 17,687 - 17,687
Transfer to asset held for sale (Note 29) (22,037) - (22,037)
Lease modification - (2,574) (2,574)
Lease expiry - (1,209) (1,209)

At 31 December 2020 12,594 1,952 14,546
Accumulated impairment
At 1 January 2020 7,968 - 7,968
Reversal of impairment during the financial year (7,968) - (7,968)

At 31 December 2020 - - -

Net book value
At 31 December 2020 88,395 4,247 92,642

In the financial year ended 31 December 2019, the Group embarked on a rationalisation plan which include consolidation of
assets and refining activities. This exercise had resulted in an impairment of RM7,968,000 for a piece of land.

In the financial year ended 31 December 2020, the Group has carried out a valuation exercise on its assets. Pursuant to the
valuation exercise, the Group has reversed an impairment charge of RM7,968,000 made previously. The fair value is within
Level 2 of the fair value hierarchy as this is based on comparison of prices for similar assets.