Annual Report 2019

119 ANNUAL REPORT 2019 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.1 Basis of preparation (continued) (i) New and amendments to HKFRSs that are mandatorily effective for the current year (continued) HKFRS 16 (continued) As a lessee (continued) The carrying amount of right-of-use assets as at 1 January 2019 comprises the following: Right-of- use assets HK$’million Right-of-use assets relating to operating leases recognised upon application of HKFRS 16 and reclassified from property, plant and equipment and other receivables 7,091 Reclassified from land use rights (Note) 10,973 18,064 By class: Land use rights 10,973 Leasehold land and buildings 164 Harbour works, buildings and dockyard 6,037 Plant, machinery, furniture and equipment 159 Others 731 18,064 Note: Upfront payments for leasehold land have been classified as land use rights as at 31 December 2018. Upon application of HKFRS 16, land use rights amounting to HK$10,973 million were reclassified to right-of-use assets.