237 SECTION 6 FINANCIAL STATEMENTS INTEGRATED ANNUAL REPORT 2025 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 4 LEASES (CONTINUED) (a) Right-of-use assets (continued) Recognition and measurement (continued) Contracts might contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, the Group has elected not to separate lease and non-lease components, and it accounts for these instead as a single lease component. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets cannot be used as security for borrowing purposes. Right-of-use assets are depreciated over the remaining period of the respective leases ranging from 1 to 89 years (2024: 1 to 90 years). Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Payments associated with short-term leases of equipment and vehicles, and all leases of low-value assets, are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less without a purchase option. Low-value assets comprise IT equipment and small items of office furniture. The title deeds to certain leasehold land of the Group with the carrying amount of approximately RM17,521,000 (2024: RM17,768,000) have yet to be issued by the relevant authorities. (b) Lease liabilities Group 2025 RM’000 2024 RM’000 Non-current 232,289 213,809 Current 20,864 18,352 Carrying amount at 31 December 253,153 232,161 Total cash outflow for leases for the financial year 35,359 34,450
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