11. RIGHT-OF-USE ASSETS/(LEASE LIABILITIES) (continued) The Group as lessee (continued) Group Represented by: 2023 2022 RM’000 RM’000 Current liabilities 365 419 Non-current liabilities 77 358 442 777 Lease liabilities owing to financial institutions 15 29 Lease liabilities owing to non-financial institutions 427 748 442 777 (a) Nature of the leasing activities Condominiums, leasehold land and buildings The Group has made upfront payments to secure the right-of-use of condominiums, leasehold land and buildings for its operations. The Group also leases warehouses and residential properties for the purpose of staff accommodation. These leasehold land and buildings, and related leases which have a lease term of more than 12 months are recognised within property, plant and equipment (Note 5). Motor vehicles The Group leases motor vehicles for employees for use in operations. (b) The right-of-use assets under property, plant and equipment are initially measured at cost, which comprise the initial amount of the lease liabilities adjusted for any lease payments made at or before the commencement date. After initial recognition, right-of-use assets are stated at cost less accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of the lease liabilities. The Group has certain leases with lease term less than twelve (12) months, and low value leases of office of RM20,000 and below. The Group applies the “shortterm lease” and “lease of low-value assets” exemptions for these leases. The right-of-use assets are depreciated on a straight-line basis over the earlier of the estimated useful lives of the right-of-use assets or the end of the lease term as disclosed in Note 5 (a) to the financial statements. ANNUAL REPORT 2023 SASBADI HOLDINGS BERHAD 110 Financial Statements (continued)
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