194 CSE GLOBAL LIMITED NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2023 27. LEASES – AS A LEASE (CONT’D) Effective interest rates The weighted average effective interest rate of the leases is 4.95% and 3.26% per annum (2022: 3.76% and 3.26%) at the balance sheet date for the Group and Company respectively. The following are the amounts recognised in profit or loss: Group Company 2023 2022 2023 2022 $’000 $’000 $’000 $’000 Depreciation expense of right-of-use assets 7,071 5,932 545 547 Interest expense on lease liabilities 829 766 62 79 Expense relating to short-term leases (included in cost of sales and administrative expense) 6,084 2,982 – – Total amount recognised in profit or loss 13,984 9,680 607 626 The Group had total cash outflows for leases of $14,219,000 in 2023 (2022: $9,334,000). The Group has several lease contracts that include extension options. These options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the Group’s business needs. Management exercises judgement in determining whether these extension options are reasonably certain to be exercised. 28. ASSET HELD-FOR-SALE Asset classified as held-for-sale refers to land and building located in Louisiana, United States, which has been classified as asset held-for-sale in accordance with SFRS(I) 5 Non-current Assets Held for Sale and Discontinued Operations.
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