20 RIGHT-OF-USE ASSETS (CONTINUED) Group 2023 Leasehold land RM’000 Buildings, structures and renovations RM’000 Plant and machinery RM’000 Motor vehicles RM’000 Office equipment, tools and other equipment RM’000 Total RM’000 Cost At 1 January 2023 2,548,993 267,145 63,287 3,279 6,593 2,889,297 Additions 56,381 13,439 1,776 1,972 – 73,568 Remeasurement of lease contracts 62,083 – – – – 62,083 Termination of lease contracts (25,922) (11,011) – – – (36,933) Disposal of subsidiaries (Note 23(c)) (9,807) – – – – (9,807) Currency translation differences 267 – 2,892 – – 3,159 At 31 December 2023 2,631,995 269,573 67,955 5,251 6,593 2,981,367 Accumulated depreciation/ impairment At 1 January 2023 489,515 196,800 46,578 1,227 4,374 738,494 Charge for the financial year 50,097 20,908 7,231 2,082 – 80,318 Reversal of impairment – (491) – – – (491) Termination of lease contracts (25,922) (9,344) – – – (35,266) Currency translation differences 200 – 2,163 – – 2,363 At 31 December 2023 513,890 207,873 55,972 3,309 4,374 785,418 Net book value at 31 December 2023 2,118,105 61,700 11,983 1,942 2,219 2,195,949 Group As at 31 December 2024, the carrying amount of right-of-use assets under land arrangements with FELDA amounted to RM322,318,000 (2023: RM336,437,000). FELDA is in the midst of applying the land titles from respective state authorities. During the financial year 2024, the Group has exercised its legal and contractual rights to extend the lease term for one of the leasehold land in Prai by another 30 years. As at the reporting date, the Group is in discussion with the landlord to negotiate and finalise the lease arrangement terms which include the lease rental rate and lease term as the landlord has not agreed to the lease term extension notification issued by the Group and the proposed rental rate. The Directors are of the view that the negotiations will be concluded in accordance with the Group’s legal and contractual rights of the lease agreement as supported by external legal advices. Accordingly, the Group has remeasured the lease liability by making a corresponding adjustment to the right-of-use assets, after taking into consideration the extended lease term by another 30 years using the increase in rental rate of other comparable leases entered into by the Group. Included in the additions of right-of-use assets of RM56,381,000 in the previous financial year, was the extension of land lease agreement, in which RM31,188,000 payment was made in the financial year ended 2024 (2023: payment of RM25,193,000). However, certain lease agreement is expected to be finalised in financial year ending 2025. FGV Holdings Berhad | Audited Financial Statements 2024 Notes to the Financial Statements For the financial year ended 31 December 2024 100
RkJQdWJsaXNoZXIy NDgzMzc=