Green Technology Annual Report

28. FINANCIAL INSTRUMENTS (CONT’D) 28.4 GAINS ARISING FROM FINANCIAL INSTRUMENTS The Group/The Company 2019 RM 2018 RM Financial Asset Amortised Cost Net gain recognised in profit or loss 1,985,175 2,260,057 28.5 FAIR VALUE INFORMATION At the end of the reporting period, there were no financial instruments carried at fair values in the statements of financial position. The financial value of the financial assets and financial liabilities of the Group and of the Company that maturing within the next 12 months approximated their carrying amounts due to the relatively short-term maturity of the financial instruments or repayable on demand terms. 29. SIGNIFICANT EVENT OCCURRING AFTER THE REPORTING PERIOD The outbreak of Coronavirus Disease 2019 (COVID-19) in early 2020 has affected the business and economic environments of the Group and hence, may impact its performance and financial position in the future. However, given the unpredictability associated with the COVID-19 outbreak and any further contingency measures that may be put in place by the governments and various private corporations, the potential financial impact of the COVID-19 outbreak on the Group’s 2020 financial statements could not be reasonably quantified at this juncture. 30. INITIAL APPLICATION OF MFRS 16 The Group has adopted MFRS 16 using the modified retrospective approach under which the cumulative effect of initial application is recognised as an adjustment to the retained profits as at 1 January 2019 (date of initial application) without restating any comparative information. The Group has applied MFRS 16 only to contracts that were previously identified as leases under MFRS 117 ‘Leases’ and IC Interpretation 4 ‘Determining Whether an Arrangement Contains a Lease’. Therefore, MFRS 16 has been applied only to contracts entered into or changed on or after 1 January 2019. Lessee Accounting At 1 January 2019, for leases that were classified as operating leases under MFRS 117, the Group measured the lease liabilities at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate at that date of 3.50%. The right-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease. The Group has used the following practical expedients in applying MFRS 16 for the first time:- • Applied a single discount rate to a portfolio of leases with reasonably similar characteristics; • Applied for the exemption not to recognise operating leases with a remaining lease term of less than 12 months as at 1 January 2019; • Excluded initial direct costs for the measurement of the right-of-use asset at the date of initial application; and • Used hindsight in determining the lease term where the lease contract contains options to extend or terminate the lease. 135 MALAYSIAN GREEN TECHNOLOGY & CLIMATE CHANGE CENTRE ANNUAL REPORT 2019