MSM Malaysia Holdings Berhad Annual Report 2020

16 LOSS FROM DISCONTINUING OPERATION (CONTINUED) (iii) Analysis of the cash flows of discontinuing operation is as follows: 2020 2019 RM’000 RM’000 Operating cash flows (14,069) 2,641 Investing cash flows 619 (1,462) Total cash (outflow)/inflow (13,450) 1,179 (iv) Loss before taxation from discontinuing operation is stated after charging/(crediting): 2020 2019 RM’000 RM’000 (Reversal of impairment)/Impairment of assets held for sale (1,762) 1,762 Impairment of property, plant and equipment 43,705 - Impairment of receivables 20 - Depreciation of property, plant and equipment 2,011 860 Depreciation of right-of-use assets 2,674 891 Property, plant and equipment written-off 27,244 - Repair and maintenance - 294 Staff costs 307 3,261 Severance cost - 6,500 Legal fees - 660 Inventories written off 177 - Land assessment charges - 4,140 Gain on disposal of property, plant and equipment (566) - In the previous year, the recoverability of plantation assets which include leasehold land and bearer plants was determined based on the offer price received from potential buyer. An impairment of RM1,762,000 was made in the previous financial year upon reclassification of the asset to Assets Held for Sale from Right-of-Use Assets and Property, Plant and Equipment. During the financial year ended 31 December 2020, the Group had exercised its right to rescind the sales and purchase agreement previously entered 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. In the financial year ended 31 December 2020, the Group has performed a valuation exercise on its assets. Pursuant to the valuation exercise, the Group has reversed an impairment charge of RM1,762,000 recorded previously. The fair value is within Level 2 of the fair value hierarchy as this is based on comparison of prices for similar assets. MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 184 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT