Yinson Annual Report 2020

236 Notes to the financial statements (cont’d) For the financial year ended 31 January 2020 Yinson Holdings Berhad SECTION 7 ACCOUNTABILITY 3. Standards, amendments to published standards and interpretations, which are applicable and adopted by the Group and the Company (continued) Adoption of MFRS 16 (continued) Impact of adoption (a) The effect of adoption as at 1 February 2019 is as follows: Reported as at 31.1.2019 RM’000 Effect of adoption on MFRS 16 RM’000 Restated as at 1.2.2019 RM’000 Consolidated Statement of Financial Position Property, plant and equipment 5,298,201 26,681 5,324,882 Lease liabilities - 28,056 28,056 Loans and borrowings 3,149,730 (1,375) 3,148,355 Company Statement of Financial Position Property, plant and equipment 2,906 1,349 4,255 Lease liabilities - 1,371 1,371 Loans and borrowings 45,867 (22) 45,845 (b) Measurement of lease liabilities on 1 February 2019 The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 February 2019 was 5.62% per annum. The reconciliation between the operating lease commitments disclosed applying MFRS 117 at 31 January 2019 to the lease liabilities recognised at 1 February 2019 is as follows: Group RM’000 Company RM’000 Operating lease commitments disclosed as at 31 January 2019 32,730 3,236 Discounted using the lessee’s incremental borrowing rate at the date of initial application 28,882 3,028 Short-term leases recognised on a straight-line basis as expense (2,146) (1,653) Low-value leases recognised on a straight-line basis as expense (55) (26) Finance lease liabilities recognised as at 31 January 2019 1,375 22 Lease liabilities recognised as at 1 February 2019 28,056 1,371 Current lease liabilities 9,287 1,077 Non-current lease liabilities 18,769 294 28,056 1,371