Page 212 - 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

29 ASSETS HELD FOR SALE

During the financial year, the Group had exercised its right to rescind a sales and purchase agreement previously entered
with a buyer to dispose its plantation assets. Pursuant to this, the related assets were reclassified from Assets Held for
Sale to Property, Plant and Equipment and Right-of-Use assets and continued to be depreciated.
The Group had subsequently received from a potential buyer a letter of intention and a letter of offer to the Company on
23 December 2020 and 5 January 2021, respectively, to purchase its leasehold plantation land and leasehold factory land
located at Chuping, Perlis. Pursuant to this, the assets have been reclassified to Assets Held for Sale at the financial year end.
The details are as follows:
210 Bearer plant -
oil palm, Building
Leasehold rubber, Plant and and office
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
Group land and mango machinery equipment Total
RM’000 RM’000 RM’000 RM’000 RM’000
2020
As at 1 January 2020 79,776 72,461 181 5,129 157,547
Transferred to property, plant and
equipment (Note 17) - (72,461) (181) (3,582) (76,224)
Transferred to right-of-use assets
(Note 18) (81,538) - - - (81,538)
Transferred from property, plant and
equipment (Note 17) - - 154 2,874 3,028
Transferred from right-of-use assets
(Note 18) 86,636 - - - 86,636
Written-off during the year - - - (387) (387)
Disposal - - - (1,160) (1,160)
Reversal of impairment loss 1,762 - - - 1,762
As at 31 December 2020 86,636 - 154 2,874 89,664

2019
As at 1 January 2019 - - - 2,027 2,027
Transferred from property, plant and
equipment (Note 17) - 72,461 181 3,582 76,224
Transferred from right-of-use assets
(Note 18) 81,538 - - - 81,538
Written-off during the year - - - (480) (480)
Impairment loss during the year (1,762) - - - (1,762)

As at 31 December 2019 79,776 72,461 181 5,129 157,547