16 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Revaluation of land and buildings
Land and buildings have been revalued on 31 December 2015 based on comparison method carried out by independent
firms of professional valuers in determining its fair value. These were based on recent sale transactions of comparable
properties with adjustments made to reflect location, visibility, size, tenure and age. The book values of the land and
buildings were adjusted to reflect the revaluation and the resultant surpluses were credited to revaluation reserve. These
were all Level 3 in the fair value hierarchy.
If the total amounts of the land and buildings had been determined in accordance with the historical cost convention, they
would have been included at:
Group
2015
RM’000
2014
RM’000
Cost
Freehold land
80,923
5,899
Leasehold land
35,580
33,080
Buildings
205,752
37,214
322,255
76,193
Accumulated depreciation
Leasehold land
(232)
(216)
Buildings
(4,115)
(6,030)
Net carrying amounts
317,908
69,947
The additions and net book value of assets under hire purchase and finance leases are as follows:
Group
2015
RM’000
2014
RM’000
Assets under finance leases:
– Addition during the financial year
16,412
10,108
– Net book value at the end of financial year
60,239
78,201
The net book value of property, plant and equipment pledged for borrowing facility as at 31 December 2015 is RM372,332,000
(2014: RM425,992,000) as disclosed in Note 29.
During the year, a subsidiary received a government grant in relation to the purchase of assets amounting to RM1,245,000 (2014
: Nil). The amount has been set off against the cost of building.
Capitalisation of borrowing costs
The capital work-in-progress includes borrowing costs arising from general and specific borrowings. During the financial year,
borrowing costs capitalised as part of capital work-in-progress amounted to RM10,065,000 (2014: RM1,757,000).
280
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
