FGV Audited Financial Statements 2019

109 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 20 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment of property, plant and equipment (continued) Financial year ended 31 December 2018 (continued) c) In previous financial year, FGV Palm Industries Sdn. Bhd., an indirect subsidiary of Company, had closed down two mills as part of the Group’s rationalisation plan. As a result, an impairment of RM9,877,000 was recognised as the Group’s impairment of non-financial assets of the Group. Leasing arrangements – Group as a lessor The Group leases out certain of its buildings and structures, mainly relating to tanks, pipelines and installations and warehouses, to tenants under operating leases. The Group is not exposed to any material impact of lease payments subject to variable lease considerations. Operating lease receipts represent rentals receivable by the Group for natural oil tanks and oil pipeline system rented out. The future aggregate minimum lease receivables under non-cancellable operating lease are as follows: Group 2019 RM’000 2018 RM’000 Within 1 year 2,112 2,134 Between 1 and 2 years 2,112 2,134 Between 2 and 3 years 2,112 2,134 Between 3 and 4 years 2,112 2,134 Between 4 and 5 years 2,112 2,134 10,560 10,670 Rental income recognised in profit or loss during the financial year amounted to RM1,930,000 (2018: RM1,955,000).