CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Cahya Mata Sarawak Berhad 138 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 15. LAND HELD FOR PROPERTY DEVELOPMENT AND PROPERTY DEVELOPMENT COSTS (a) Land held for property development Leasehold land Development expenditure Total Group RM’000 RM’000 RM’000 Cost: At 1 January 2015 54,395 7,420 61,815 Additions 228,675 12,075 240,750 Transferred to property development costs (Note 15(b)) (4,500) (1,043) (5,543) At 31 December 2015 and 1 January 2016 278,570 18,452 297,022 Additions - 8,789 8,789 Adjustments (67,879) (2,803) (70,682) Disposals (226) (160) (386) Transferred to property development costs (Note 15(b)) (102) (308) (410) At 31 December 2016 210,363 23,970 234,333 Certain long term leasehold landof theGroupwith a carryingamount of RM18,327,899 (2015: RM18,327,899) are charged to secure revolving financial facilities granted to the subject subsidiary (Note 30). Included in land held for property development were finance costs capitalised during the year amounting to RM5,086,000 (2015: RM10,712,000) (Note 7). The adjustments to the leasehold land and development expenditure of the current financial year were due to the reduction in land premium payable approved by the relevant authority. (b) Property development costs Leasehold land Development expenditure Total Group RM’000 RM’000 RM’000 Cumulative property development costs: At 1 January 2015 85,988 625,415 711,403 Costs incurred during the year - 143,368 143,368 Transferred from land held for property development (Note 15(a)) 4,500 1,043 5,543 Reversal of completed projects (521) (371) (892) Project written off (Note 8) - (1,310) (1,310) Unsold units transferred to inventories (12) (6,232) (6,244) At 31 December 2015 and 1 January 2016 89,955 761,913 851,868 Adjustment (3,012) (446) (3,458) Costs incurred during the year - 157,731 157,731 Transferred from land held for property development (Note 15(a)) 102 308 410 Project written back (Note 8) - 149 149 Unsold units transferred to inventories (370) (44,705) (45,075) At 31 December 2016 86,675 874,950 961,625