MSM Malaysia Holdings Berhad Annual Report 2020

29 ASSETS HELD FOR SALE During the financial year, the Group had exercised its right to rescind a sales and purchase agreement previously entered with a buyer 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. The Group had subsequently received from a potential buyer a letter of intention and a letter of offer to the Company on 23 December 2020 and 5 January 2021, respectively, to purchase its leasehold plantation land and leasehold factory land located at Chuping, Perlis. Pursuant to this, the assets have been reclassified to Assets Held for Sale at the financial year end. The details are as follows: Bearer plant - oil palm, Building Leasehold rubber, Plant and and office Group land and mango machinery equipment Total RM’000 RM’000 RM’000 RM’000 RM’000 2020 As at 1 January 2020 79,776 72,461 181 5,129 157,547 Transferred to property, plant and equipment (Note 17) - (72,461) (181) (3,582) (76,224) Transferred to right-of-use assets (Note 18) (81,538) - - - (81,538) Transferred from property, plant and equipment (Note 17) - - 154 2,874 3,028 Transferred from right-of-use assets (Note 18) 86,636 - - - 86,636 Written-off during the year - - - (387) (387) Disposal - - - (1,160) (1,160) Reversal of impairment loss 1,762 - - - 1,762 As at 31 December 2020 86,636 - 154 2,874 89,664 2019 As at 1 January 2019 - - - 2,027 2,027 Transferred from property, plant and equipment (Note 17) - 72,461 181 3,582 76,224 Transferred from right-of-use assets (Note 18) 81,538 - - - 81,538 Written-off during the year - - - (480) (480) Impairment loss during the year (1,762) - - - (1,762) As at 31 December 2019 79,776 72,461 181 5,129 157,547 MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 210 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