77 www.excelforce.com.my Notes to the Financial Statements (cont’d) 4. Right-of-use Assets (cont’d) Leasehold buildings Office space Hostel Total Group and Company RM RM RM RM 2023 Cost At 1 January 2022 19,756,200 1,032,562 - 20,788,762 Additions - - 270,547 270,547 At 30 June 2023 19,756,200 1,032,562 270,547 21,059,309 Accumulated depreciation At 1 January 2022 - 372,870 - 372,870 Charge for the financial period - 516,281 45,091 561,372 At 30 June 2023 - 889,151 45,091 934,242 Carrying amount At 30 June 2023 19,756,200 143,411 225,456 20,125,067 (a) The Group leases buildings, office space and hostel of which the leasing activities are summarised below: (i) Leasehold buildings The Group has leased several leasehold buildings over the remaining lease period. (ii) Office space The Group has leased an office space for 3 years, with an option to renew the lease after that expiry date. (iii) Hostel The Group has leased a hostel for 1 year. (b) Assets pledged as securities to licensed banks The net carrying amount of the leasehold buildings of the Group and of the Company amounting to RM9,864,600 (2023: RMNil) are pledged as securities for banking facility granted to the Group and to the Company as disclosed in Note 19 to the financial statements. (c) The remaining lease term of the leasehold buildings is 79 years (2023: 80 years). (d) Material accounting policy information Right-of-use (“ROU”) assets are stated at cost less any accumulated depreciation and accumulated impairment losses. Deprecation of ROU assets are recognised in the profit or loss on straight-line method from the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term. The estimated useful lives of the ROU assets are determined on the same basis as those of property, plant and equipment as follows: Leasehold buildings Over the remaining lease period Office space Over the lease term Hostel Over the lease term
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