Annual Report 2019

188 Transport International Holdings Limited 2019 Annual Report Notes to the Financial Statements (Expressed in Hong Kong dollars unless otherwise indicated) 13 Investment properties, investment property under development, interest in leasehold land and other property, plant and equipment (continued) (b) Right-of-use assets (continued) The analysis of expense items in relation to leases recognised in profit or loss is as follows: 2019 2018 (Note) $’ 000 $’ 000 Depreciation charge of right-of-use assets by class of underlying asset: Interest in leasehold land 2,012 2,012 Other properties leased for own use 3,997 – 6,009 2,012 Interest on lease liabilities (note 5(b)) 200 – Expense relating to short-term leases and other leases with remaining lease term ending on or before 31 December 2019 3,672 – Total minimum lease payments for leases previously classified as operating leases under HKAS 17 – 32,185 Note: The Group has initially applied HKFRS 16 using the modified retrospective approach and adjusted the opening balances at 1 January 2019 to recognise right-of-use assets relating to leases which were previously classified as operating leases under HKAS 17. The depreciated carrying amount of the finance lease assets which were previously included in property, plant and equipment is also identified as a right-of-use asset. After initial recognition of right-of-use assets at 1 January 2019, the Group as a lessee is required to recognise the depreciation of right-of-use assets, instead of the previous policy of recognising rental expenses incurred under operating leases on a straight-line basis over the lease term. Under this approach, the comparative information is not restated. See note 1(c). During the year, additions to right-of-use assets were $3,990,000. This amount related to the capitalised lease payments payable under new tenancy agreements. Details of total cash outflow for leases and the maturity analysis of lease liabilities are set out in notes 22(e) and 26, respectively.