Page 244 - Bank-Muamalat-AR2020

242 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
ANNUAL REPORT FY2020

Notes to the fiNaNcial statemeNts
31 December 2020 (16 JamaDil awal 1442h)

15. LEASES (CONT’D.)
15.1 Group and the Bank as a lessee (cont’d.)

(b) Lease payments not recognised as a liability
The Group and the Bank have elected not to recognise a lease liability for short term leases (leases with an expected
term of twelve (12) months or less) or for leases of low value assets. Payments made under such leases are expensed
on a straight-line basis.

The expenses relating to payments not included in the measurement of the lease liability during the financial period
is as follows:

Group and Bank
31 December 31 December
2020 2019
rM’000 rM’000

Expenses relating to leases of low-value assets
(included in administrative expenses) 268 520

As at the reporting date, the Group and the Bank were committed to low-value assets and the total commitment was
RM255,347 (31 December 2019: RM335,015).
(c) As at the reporting date, the Group’s and the Bank’s total future cash outflows for leases that had not yet commenced
is nil.