MSM Malaysia Holdings Berhad Annual Report 2020

18 RIGHT-OF-USE ASSETS Leasehold Group land Building Total RM’000 RM’000 RM’000 2020 Cost At 1 January 110,437 10,709 121,146 Transfer from asset held for sale (Note 29) 99,225 - 99,225 Transfer to asset held for sale (Note 29) (108,673) - (108,673) Lease modification - (3,301) (3,301) Lease expiry - (1,209) (1,209) At 31 December 2020 100,989 6,199 107,188 Accumulated depreciation At 1 January 2020 12,067 4,937 17,004 Charge for the financial year 4,877 798 5,675 Transfer from asset held for sale (Note 29) 17,687 - 17,687 Transfer to asset held for sale (Note 29) (22,037) - (22,037) Lease modification - (2,574) (2,574) Lease expiry - (1,209) (1,209) At 31 December 2020 12,594 1,952 14,546 Accumulated impairment At 1 January 2020 7,968 - 7,968 Reversal of impairment during the financial year (7,968) - (7,968) At 31 December 2020 - - - Net book value At 31 December 2020 88,395 4,247 92,642 In the financial year ended 31 December 2019, the Group embarked on a rationalisation plan which include consolidation of assets and refining activities. This exercise had resulted in an impairment of RM7,968,000 for a piece of land. In the financial year ended 31 December 2020, the Group has carried out a valuation exercise on its assets. Pursuant to the valuation exercise, the Group has reversed an impairment charge of RM7,968,000 made 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 190 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