GHL System Berhad Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 107 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 12. PROPERTY, PLANT AND EQUIPMENT (cont’d) Company 2018 Balance as at 1.1.2018 Additions Written off Disposals Depreciation charges for the financial year Balance as at 31.12.2018 RM RM RM RM RM RM Carrying amount Long term leasehold land 1,428,029 - - - (16,414) 1,411,615 Buildings 2,669,016 5,100,000 - - (112,737) 7,656,279 Computer equipment 608,296 345,922 - (1,572) (339,739) 612,907 Computer software 503,358 12,084 - - (78,009) 437,433 Motor vehicles 328,556 - - - (78,853) 249,703 Furniture, fittings and office equipment 347,174 124,507 (5) - (73,446) 398,230 Renovation 66 9,200 - - (2,264) 7,002 5,884,495 5,591,713 (5) (1,572) (701,462) 10,773,169 Company 2018 At 31.12.2018 Cost Accumulated depreciation Carrying amount RM RM RM Long term leasehold land 1,625,000 (213,385) 1,411,615 Buildings 8,350,000 (693,721) 7,656,279 Computer equipment 5,127,831 (4,514,924) 612,907 Computer software 1,799,737 (1,362,304) 437,433 Motor vehicles 394,266 (144,563) 249,703 Furniture, fittings and office equipment 2,292,458 (1,894,228) 398,230 Renovation 702,608 (695,606) 7,002 Total 20,291,900 (9,518,731) 10,773,169 (a) All items of property, plant and equipment (excluding right-of-use assets) are initially measured at cost. After initial recognition, property, plant and equipment (excluding right-of-use assets) are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated to write off the cost of the assets to their residual values on a straight line basis over their estimated useful lives. The estimated useful lives represent common life expectancies applied in the industry. The principal depreciation periods excluding right-of-use assets are as follows: Buildings 50 to 99 years Computer equipment 3 to 5 years EDC equipment 5 years Computer software 3 to 10 years Motor vehicles 5 years Furniture, fittings and office equipment 5 to 10 years Renovation 2 to 5 years