BIMB Integrated Annual Report 2019

13 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES The statement of financial position shows the following amounts relating to leases: Group 2019 RM’000 Right-of-use assets: Properties 249,484 Equipment 959 250,443 Lease liabilities 328,062 Additions to the right-of-use assets during the 2019 financial year were RM10,207,000. Included in property and equipment, there is RM22,662,000 of right-of-use assets in relation to leasehold land and building. The statement of profit or loss as at 31 December 2019 shows the following amounts relating to leases: Group 2019 RM’000 Depreciation charge on right-of-use assets: Properties 16,894 Equipment 638 17,532 Finance cost 18,243 Expenses relating to short-term leases and leases of low-value assets 37,316 Total cash outflow for leases 63,880 14 INVESTMENTS IN SUBSIDIARIES Company 2019 2018 RM’000 RM’000 At cost Quoted shares in Malaysia 99,053 99,053 Unquoted shares in Malaysia 5,210,042 5,210,042 Less: Impairment loss^ (4,822) – 5,304,273 5,309,095 ^ During the financial year ended 31 December 2019, the Company has made an impairment of RM4.8 million on its investment in BIMB Securities Sdn. Bhd. due to lower than expected performance of the subsidiary. The recoverable amount of investment in BIMB Securities Sdn. Bhd. is RM49.7 million based on value in use and was determined using discount rate of 8.08% on a post-tax basis. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 224 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance