2019 UEM Edgenta Annual Report

155 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D.) 2.2 Changes in accounting policies (cont’d.) MFRS 16 Leases (cont’d.) The effect of adoption MFRS 16 is as follows: Statement of financial position - 1 January 2019 As previously reported RM’000 Effects of MFRS 16 RM’000 After adjustments RM’000 Group Non-current assets Property, plant and equipment (a) 185,033 (3,080) 181,953 Prepaid land lease payments (a) 2,976 (2,976) - Right-of-use assets (b) - 38,080 38,080 188,009 32,024 220,033 Non-current liability Borrowings (a) 2,026 (2,026) - Lease liabilities (a) - 25,803 25,803 2,026 23,777 25,803 Current liability Borrowings (a) 1,101 (1,101) - Lease liabilities (a) - 9,348 9,348 1,101 8,247 9,348 Total liabilities 3,127 32,024 35,151 Company Non-current assets Property, plant and equipment (a) 19,088 (3,065) 16,023 Right-of-use assets (b) - 31,751 31,751 19,088 28,686 47,774 Non-current liability Lease liabilities (a) - 7,211 7,211 Current liability Lease liabilities (a) - 21,475 21,475 - 28,686 28,686 The Group has lease contracts for various items of leasehold land, office premises, and motor vehicles. Before the adoption of MFRS 16, the Group classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. Refer to Note 2.4(q) for the accounting policy prior to 1 January 2019.