Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 2 MATERIAL ACCOUNTING POLICIES (CONTINUED) 2.8 Leases (continued) Accounting as lessor (continued) (b) Operating leases (continued) Minimum lease receivables on investment properties and equipment are as follows: Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Not later than 1 year 12,757 1,746 1,328 1,549 Later than 1 year and not later than 2 years 11,787 861 187 861 Later than 2 years and not later than 5 years 10,133 54 - 54 34,677 2,661 1,515 2,464 2.9 Investment properties Investment properties are properties held to earn rental income or for capital appreciation or both rather than for use in the production or supply of goods and services or for administrative purposes, or sale in the ordinary course of business. (a) Measurement basis Investment properties are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of investment properties includes expenditure that is directly attributable to the acquisition of the asset. Subsequent costs are included in the asset’s carrying amount when it is probable that future economic benefits associated with the asset will flow to the Group and the Company and the cost of the asset can be measured reliably. All other repair and maintenance costs are charged to the profit or loss during the financial year in which they are incurred. At each reporting date, the Group and the Company assess whether there is any indication of impairment. Where an indication of impairment exists, the carrying value of the investment property is assessed and written down immediately to its recoverable amount. See accounting policy 2.13 on impairment of non-financial assets. Investment properties are derecognised upon disposal or when they are permanently withdrawn from use and no future economic benefits are expected from their disposal. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss. Transfers are made to or from investment property only when there is a change in use. Transfers from investment property to owner-occupied property are made at the carrying amount as at the date of change in use. For a transfer from owner-occupied property to investment property, the property is accounted for in accordance with the accounting policy for property, plant and equipment as set out in accounting policy 2.7 up to the date of change in use. Integrated Annual Report 2023 178
RkJQdWJsaXNoZXIy NDgzMzc=