Sasbadi Annual Report 2021

82 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 82 5. PROPERTY, PLANT AND EQUIPMENT (continued) (a) All items of property, plant and equipment are initially recognised at cost. After initial recognition, property, plant and equipment are stated at cost (other than the properties comprising condominiums and leasehold land and buildings which are revalued every 4 to 5 years and at shorter intervals whenever the fair value of the revalued assets is expected to differ materially from their carrying value), less accumulated depreciation and any accumulated impairment losses. Additions subsequent to the date of valuation are stated at cost until the next revaluation exercise. 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 are as follows: Condominiums 50 years Leasehold land 60 to 99 years Buildings 50 years Motor vehicles 5 years Office equipment, furniture and fittings 10 years Renovation 10 years Computers 3 to 5 years (b) During the financial year, the Group made the following cash payments to purchase property, plant and equipment: Group 2021 2020 RM’000 RM’000 Purchase of property, plant and equipment 209 3,692 Hire purchase - (160) Leases (106) (1,124) Contra of amount due from a vendor - (1,500) Cash payments to purchase property, plant and equipment 103 908 (c) Right-of-use assets acquired under leasing arrangements are presented together with the owned assets of the same class. Details of such leased assets are disclosed under Note 11. (d) Certain land and buildings of the Group with carrying amounts of RM33,665,000 (2020: RM37,542,000) were charged to banks as security for banking facilities granted to the Group (Note 19).