GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 170 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 35. ADOPTION OF NEW MFRSs AND AMENDMENTS TO MFRSs (cont’d) 35.1 New MFRSs adopted during the financial year (cont’d) MFRS 16 Leases (cont’d) (b) Lease liabilities are measured as follows: Group RM Operating lease commitments at 31 December 2018 as disclosed under MFRS 117 2,423,402 Weighted average incremental borrowing rate as at 1 January 2019 4.92% Discounted operating lease commitments as at 1 January 2019 2,310,651 Finance lease liabilities recognised as at 31 December 2018 10,065,345 Contracts terminated (138,862) Recognition exemption for leases with less than 12 months of lease term at transition (22,443) Extension options reasonably certain to be exercised 295,626 Contracts reassessed as lease contracts 1,729,795 Lease liabilities recognised at 1 January 2019 14,240,112 Company RM Operating lease commitments at 31 December 2018 as disclosed under MFRS 117 22,200 Weighted average incremental borrowing rate as at 1 January 2019 3.96% Discounted operating lease commitments as at 1 January 2019 20,683 Finance lease liabilities recognised as at 31 December 2018 229,981 Extension options reasonably certain to be exercised 21,803 Contracts reassessed as lease contracts 81,719 Lease liabilities recognised at 1 January 2019 354,186 35.2 New MFRSs that have been issued, but only effective for annual periods beginning on or after 1 January 2020 The following are Standards of the MFRS Framework that have been issued by the MASB but have not been early adopted by the Group and the Company: Title Effective Date Amendments to References to the Conceptual Framework in MFRS Standards 1 January 2020 Amendments to MFRS 3 Definition of a Business 1 January 2020 Amendments to MFRS 101 and MFRS 108 Definition of Material 1 January 2020 Amendments to MFRS 9, MFRS 139 and MFRS 7 Interest Rate Benchmark Reform 1 January 2020 MFRS 17 Insurance Contracts 1 January 2021 Amendments to MFRS 101 Classification of Liabilities as Current or Non-current 1 January 2022 Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred The Group and the Company do not expect the adoption of the above Standards to have significant impact on the financial statements.