NOTES TO THE FINANCIAL STATEMENTS Cont’d 4. Right-of-use assets cont’d 4.2 Judgements and assumptions in relation to leases The Group assesses at lease commencement by applying judgement whether it is reasonably certain to exercise the extension options. Group entities consider all facts and circumstances including their past practice and any cost that will be incurred to change the asset if an option to extend is not taken, to help them determine the lease term. The Group also applied judgement and assumptions in determining the incremental borrowing rate of the respective leases. Group entities first determine the closest available borrowing rates before using significant judgement to determine the adjustments required to reflect the term, security, value or economic environment of the respective leases. 5. Investment properties Group Note RM’000 Cost At 1 January 2021 59,801 Transfer from right-of-use assets 4 15,944 At 31 December 2021/1 January 2022 75,745 Disposal (3,528) Effect of movements in exchange rates (1,743) At 31 December 2022 70,474 Depreciation and impairment loss At 1 January 2021 9,860 Depreciation for the year 2,609 Transfer from right-of-use assets 4 3,950 At 31 December 2021/1 January 2022 16,419 Depreciation for the year 2,141 Disposal (382) Effect of movements in exchange rates (509) At 31 December 2022 17,669 Carrying amounts At 1 January 2021 49,941 At 31 December 2021/1 January 2022 59,326 At 31 December 2022 52,805 PRESS METAL ALUMINIUM HOLDINGS BERHAD 239
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