ENRA Group Berhad Annual Report 2019

160 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 45. ADOPTION OF NEWMFRSs AND AMENDMENTS TO MFRSs (cont’d) 45.2 Explanation of transition to MFRSs (cont’d) Notes to the reconciliations (cont’d) (iii) Adoption of MFRS 16 Leases (cont’d) Note As at 31 March 2017 RM Changes RM As at 31 March 2017 RM Company Non-current assets Right-of-use assets (a) - 1,451 1,451 Current liabilities Lease liabilities (b) - 427 427 Non-current liabilities Lease liabilities (b) - 1,070 1,070 Total lease liabilities - 1,497 1,497 The following table presents the impact of changes to the statements of financial position of the Group and of the Company resulting from early adoption of MFRS 16 as at 31 March 2018: Note As at 31 March 2018 RM Changes RM As at 31 March 2018 RM Group Non-current assets Right-of-use assets (a) - 2,067 2,067 Current liabilities Lease liabilities (b) - 931 931 Non-current liabilities Lease liabilities (b) - 1,233 1,233 Total lease liabilities - 2,164 2,164 Company Non-current assets Right-of-use assets (a) - 1,302 1,302 Current liabilities Lease liabilities (b) - 455 455 Non-current liabilities Lease liabilities (b) - 915 915 Total lease liabilities - 1,370 1,370 (a) The right-of-use assets comprise building, office equipment and vessel recognised during the financial year. Subsequent to initial recognition, the right-of-use assets are measured at cost less any accumulated depreciation, accumulated impairment losses and adjusted for any remeasurement of lease liabilities. (b) The lease liabilities are recognised and discounted using the incremental borrowing rate of 5.27%. Subsequent to initial recognition, the Group measures the lease liabilities by increasing the carrying amount to reflect the interest on the lease liabilities,reducing thecarryingamount to reflect leasepayments made and remeasuring the carrying amount to reflect any reassessment or lease modification. (c) The Group and the Company have elected to early adopt MFRS 16 which is mandatory for financial periods beginning on or after 1 January 2019. Comparative figures for the financial year ended 2019 in these financial statements have been restated to give effect to these changes.