127 ANNUAL REPORT 2024 Notes to The Financial Statements 31 December 2024 12. Right-of-use assets (cont’d) Leasehold land Company $ Cost: At 1 January 2023 1,140,235 Lease modification 32,878 At 31 December 2023 and 31 December 2024 1,173,113 Accumulated depreciation: At 1 January 2023 131,847 Depreciation for the year 33,590 At 31 December 2023 165,437 Depreciation for the year 33,589 At 31 December 2024 199,026 Carrying value: At 1 January 2023 1,008,388 At 31 December 2023 1,007,676 At 31 December 2024 974,087 The useful lives of Group and Company’s right-of-use assets are as follows: Leasehold land – 35 years Office premises – 2 to 5 years Office equipment – 5 years Motor vehicles – 3 to 5 years The depreciation expense for the Group and Company is charged under other operating expenses. The leasehold lands, on which the buildings of the Company and one of its subsidiary in Singapore are built are under a non-cancellable operating lease expiring in 2053 and 2054. The annual land rent payable is subject to annual revision. Lease modification is accounted for upon the revision of annual land rent. There are restrictions or covenants imposed by the leases to sublet the asset to another party. The right-of-use asset can only be used by the lessee. Unless permitted by the owner, the lease prohibits from selling or pledging the underlying leased assets as security. Typically the leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Insurance, and maintenance fees on right-of-use assets are usually required under the lease contracts. Other information about the leasing activities relating to the material right-of-use assets are summarised as follows: Group Company Leasehold lands Office premises Motor vehicles Leasehold land 2024 Number of right-of-use assets 2 7 5 1 Remaining term – range (years) 29-30 0-5 1-2 29 Remaining term – average (years) 29 2 1 29 2023 Number of right-of-use assets 2 7 5 1 Remaining term – range (years) 30-31 0-5 1-3 30 Remaining term – average (years) 30 1 2 30
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