Section 8 UEM Edgenta Berhad FINANCIAL STATEMENTS 312 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. INVESTMENT PROPERTIES (CONTD.) Fair value measurement hierarchy for investment properties (contd.) The following table show a reconciliation of Level 3 fair value: Group 2023 RM’000 2022 RM’000 Land As at 1 January 13,800 - Transfer from land held for development - 477 Fair value adjustment 525 13,323 As at 31 December 14,325 13,800 15. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES The Group and the Company have lease contracts for leasehold land, office premises and motor vehicles used in its operations. Leases of premises generally have lease terms between 2 and 15 years, while motor vehicles have lease terms between 2 to 3 years. The Group and the Company have several lease contracts that include extension and termination options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s and the Company’s business needs. Management exercises judgement in determining whether these extension and termination options are reasonably certain to be exercised. The Group and the Company also has leases with lease terms of 12 months or less and leases of office equipment with low value. The Group and the Company apply the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the year: Leasehold land RM’000 Office premises RM’000 Motor vehicles RM’000 Total RM’000 Group As at 1 January 2023 4,600 39,532 114 44,246 Additions - 7,191 75 7,266 Acquisition of a subsidiary (Note 44(a)) - 305 - 305 Depreciation (Note 7) (116) (14,770) (96) (14,982) Derecognition - (1,674) - (1,674) Foreign exchange differences - 445 - 445 As at 31 December 2023 4,484 31,029 93 35,606
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