Annual Report 2020

37. Significant changes in accounting policies (continued) As a lessee (continued) The Group used the following practical expedients when applying MFRS 16 to leases previously classified as operating lease or finance lease under MFRS 117: - applied a single discount rate to a portfolio of leases with similar characteristics; - applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term as at 1 April 2019; - excluded initial direct costs from measuring the right-of-use asset at the date of initial application; and - used hindsight when determining the lease term if the contract contains options to extend or terminate the leases. As a lessor Group entities who is an immediate lessor reassessed the clarification of a sublease previously classified as an operating lease under MFRS 117 and concluded that the sublease is an operating lease under MFRS 16. 37.1 Impacts on financial statements Since the Group applied the requirements of MFRS 16 retrospectively with the cumulative effect of initial application at 1 April 2019, there are no adjustments made to the prior period presented. The following table explains the difference between operating lease commitments applying MFRS 117 at 31 March 2019, and lease liabilities recognised in the statement of financial position at 1 April 2019. Group RM’000 Operating lease commitments at 31 March 2019 90,215 Discounted using the incremental borrowing rate at 1 April 2019 78,672 Hire purchase liabilities recognised at 31 March 2019 290 Recognition exemption for short-term leases (4,392) Recognition exemption for leases of low-value assets (199) Lease liabilities recognised at 1 April 2019 74,371 38. Subsequent event In June 2020, the Company proposed to undertake a bonus issue of 811,219,129 bonus shares on the basis of one (1) bonus share for every two (2) existing shares held on an entitlement date to be determined and announced later. The Board expects the proposed bonus issue to be completed by the fourth quarter of 2020. 39. Comparative figures Certain comparative figures have been restated to conform to current year’s presentation. 2019 As restated RM’000 As previously reported RM’000 Administrative expenses 234,779 297,723 Distribution cost 136,649 73,705 A Milestone on Our Sustainable Growth Journey 215