Tropicana Corporation Berhad Annual Report 2019

For the financial year ended 31 December 2019 Notes to the Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.) 2.2 Changes in accounting policies arising from adoption of new MFRSs and Amendments to MFRSs (cont’d.) The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 5.68% per annum. The reconciliation between the operating lease commitments disclosed applying MFRS 117 as at 31 December 2018 to the lease liabilities recognised as at 1 January 2019 is as follows: Group Company RM’000 RM’000 Operating leases commitment as at 31 December 2018 5,503 815 Weighted average incremental borrowing rate as at 1 January 2019 5.68% 5.68% Discounted operating leases commitments as at 1 January 2019 5,086 652 Less: Commitments relating to short-term leases (193) – Commitments relating to leases of low-value assets (193) – Others (55) – Add: Commitments relating to the lease previously not included in operating leases commitments as at 31 December 2018 3,433 2,178 Lease payments relating to renewal periods not included in operating leases commitments as at 31 December 2018 446 45 Lease liabilities recognised as at 1 January 2019 8,524 2,875 2.3 Standards issued but not yet effective The standards, amendments to MFRSs and interpretations that are issued but not yet effective up to the date of issuance of the Group’s and of the Company’s financial statements are disclosed below. The Group and the Company intend to adopt these standards, if applicable, when they become effective. Effective for financial periods beginning on or after 1 January 2020: Amendments to MFRS 2 Share-based Payment Amendments to MFRS 3 Business Combinations Amendments to MFRS 3 Definition of Business Amendments to MFRS 6 Exploration for and Evaluation of Mineral Resources Amendments to MFRS 9, MFRS 139 and MFRS 7 Interest Rate Benchmark Reform Amendments to MFRS 14 Regulatory Deferral Accounts Amendments to MFRS 101 Presentation of Financial Statements Amendments to MFRS 101 and MFRS 108 Definition of Material Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors Amendments to MFRS 134 Interim Financial Reporting Amendments to MFRS 137 Provisions, Contingent Liabilities and Contingent Assets Amendments to MFRS 138 Intangible Assets Amendments to IC Interpretation 12 Service Concession Arrangements Amendments to IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments Amendments to IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine Amendments to IC Interpretation 22 Foreign Currency Transactions and Advance Consideration Amendments to IC Interpretation 132 Intangible Assets-Web Site Costs Tropicana Corporation Berhad Annual Report 2019 pg 132 About Tropicana Our Strategic Performance Our Leadership