CAHYA MATA SARAWAK ANNUAL REPORT 2016

137 Cahya Mata Sarawak Berhad A N N U A L R E P O R T 2 0 1 6 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 13. PROPERTY, PLANT AND EQUIPMENT (CONT'D.) (c) Land Included in the carrying amount of land are: Group 2016 2015 RM’000 RM’000 Freehold land 417 416 Leasehold land 64,286 61,761 64,703 62,177 (d) Capitalisation of borrowing costs The Group’s building, plant and machinery include borrowing costs arising from loans procured for the purpose of the construction of building and plant. In the previous financial year, the borrowing costs capitalised in building, plant and machinery amounted to RM3,367,853 (Note 7). 14. PREPAID LAND LEASE PAYMENTS Group Company 2016 2015 2016 2015 RM’000 RM’000 RM’000 RM’000 Cost: At 1 January and 31 December 24,014 24,014 11,925 11,925 Accumulated amortisation: At 1 January 8,040 7,276 2,213 1,787 Amortisation for the year (Note 8) 764 764 426 426 At 31 December 8,804 8,040 2,639 2,213 Net carrying amount 15,210 15,974 9,286 9,712 Amount to be amortised: - Not later than one year 764 764 426 426 - Later than one year but not later than five years 3,053 3,053 1,704 1,704 - Later than five years 11,393 12,157 7,156 7,582 The Group and the Company have prepaid land leases in Malaysia. The prepaid land leases of the Group and the Company have a remaining tenure of 8 to 40 years (2015: 9 to 41 years) and 22 to 40 years (2015: 23 to 41 years), respectively.