Page 260 - Bank-Muamalat_Annual-Report-2023
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BANK MUAMALAT MALAYSIA BERHAD




          NOTES TO THE
          FINANCIAL STATEMENTS
          31 DECEMBER 2023 (18 JAMADIL AKHIR 1445H)





          15.  LEASES

              15.1  Group and the Bank as a lessee
                   The Group and the Bank have leases for leasehold land, building and office equipment. Lease contracts are typically
                   made for fixed periods of one (1) to three (3) years, but may have extension options.

                   With  the  exception  of  short-term  leases  and  leases  of  low-value  underlying  assets,  each  lease  is  reflected  on  the
                   statements of financial position as a right-of-use asset and a lease liability.

                   Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Some leases
                   contain an option to extend the lease for a further term.

                   (a)   Lease liabilities
                                                                                Profit  rate     Goup  and  Bank
                                                                                    (%)         2023          2022
                                                                                             RM’000        RM’000

                       Non-current                                                  4.5      25,415         13,689
                       Current                                                      4.5       2,863         18,622
                       Current                                                      5.5      10,191          5,122
                                                                                             38,469         37,433


                   (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
                       year is as follows:
                                                                                                Group  and  Bank
                                                                                               2023          2022
                                                                                            RM’000         RM’000

                       Expenses relating to leases of low-value assets
                         (included in administrative expenses)                                  403           402

                       As at the reporting date, the Group and the Bank were committed to low-value assets and the total commitment
                       was RM236,787 (2022: RM214,925).















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