Page 119 - HRC_AR2020

HENGYUAN REFINING COMPANY BERHAD I 117

15 leases

(i) the balance sheet shows the following amounts relating to leases:
right-of-use assets
land lease equipment tugboats Vehicles total
2020 rM’000 rM’000 rM’000 rM’000 rM’000

cost
At 1 January 1,626 500 34,746 1,761 38,633
Additions - - - 119 119
At 31 December 1,626 500 34,746 1,880 38,752

accumulated depreciation/amortisation
At 1 January 16 82 7,192 500 7,790
Charge for the financial year 19 167 6,950 382 7,518
At 31 December 35 249 14,142 882 15,308

carrying amount
At 31 December 1,591 251 20,604 998 23,444

Land lease as at reporting date are pledged as security for borrowings as disclosed in Note 26.
The depreciation of right-of-use assets is included in the “depreciation and amortisation” line item in the profit or loss.

land lease equipment tugboats Vehicles total
2019 rM’000 rM’000 rM’000 rM’000 rM’000
cost
At 1 January - - 34,497 1,780 36,277
Reclassification 1,643 - - - 1,643
Additions - 505 11,084 - 11,589
Lease modification - - (10,463) - (10,463)
Effect of exchange rate changes (17) (5) (372) (19) (413)
At 31 December 1,626 500 34,746 1,761 38,633

accumulated depreciation/amortisation
At 1 January - - 1,151 149 1,300
Charge for the financial year 18 83 7,692 356 8,149
Lease modification - - (1,570) - (1,570)
Effect of exchange rate changes (2) (1) (81) (5) (89)
At 31 December 16 82 7,192 500 7,790

carrying amount
At 31 December 1,610 418 27,554 1,261 30,843