Yinson Annual Report 2020

256 Notes to the financial statements (cont’d) For the financial year ended 31 January 2020 Yinson Holdings Berhad SECTION 7 ACCOUNTABILITY 16. Property, plant and equipment (continued) (e) Additional information for right-of-use assets were as follows: Buildings Office equipment Total 2020 RM’000 RM’000 RM’000 Group Depreciation charge for the financial year 10,690 151 10,841 Carrying amounts at the end of financial year 28,792 542 29,334 Company Depreciation charge for the financial year 1,044 - 1,044 Carrying amounts at the end of financial year 305 - 305 (f) The carrying amount of property, plant and equipment subject to operating leases, primarily comprising FPSO John Agyekum Kufuor and FPSO Adoon, as disclosed in Note 39(b) at each reporting date were as follows: Group 2020 2019 RM’000 RM’000 FPSOs, OSVs and tankers 4,430,359 4,418,216 (g) Impairment of Offshore Support Vessels (“OSVs”) The decline in vessel utilisation and charter rates of OSVs in the current financial year were identified as impairment indicators. Subsequently, the Group undertook an impairment review, which resulted in an impairment loss of RM4,883,000 (2019: RM33,030,000) on certain OSVs based on their forecasted value in use. The key assumptions used are as follows: (i) Utilisation rates and charter rates forecasted over the projected service lives of these OSVs. These were estimated based on past performance records, future market outlook and management’s expectation of market developments; (ii) Relevant operating costs adjusted for average inflation rate of 2.0% (2019: 2.0% to 2.5%) per annum over the projected service lives of the respective OSVs; (iii) Expected residual value of OSVs based on scrap values at the end of their service lives; (iv) Regional industry weighted average cost of capital (“WACC”) ranging from 6.5% to 7.3% (2019: 6.7% to 7.3%); and (v) The projected service lives of these OSVs.