Member firm of PricewaterhouseCoopers International Limited - Statutory audit 5.9 4.6 0 0 - Others - Statutory audit 0.1 0 0 0 - Non-audit services - Tax related services 0.2 0.2 0 0.1 - Other non-audit services 0 1.5 0 0.2 Staff costs (Note 34)* 3,885.8 3,798.1 2,670.1 2,591.0 PPE: - Depreciation 7,783.7 7,500.7 5,060.3 4,790.2 - Written off/Impairment 53.5 61.8 29.4 33.5 NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 284 33 OPERATING EXPENSES (CONTINUED) Operating expenses include the following items: (continued) Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million ROU assets: - Depreciation 3,482.0 3,901.8 5,709.6 6,236.0 Impairment losses on investments in: - Subsidiaries 0 0 15.2 18.9 - Associates 35.9 68.6 0 0 - Joint ventures 1.32.3 0 0 Reversal of impairment losses on investment in a subsidiary 0 0 (137.7) 0 Impairment losses on intangible assets 123.6 22.7 0 0 Inventories: - Provision for obsolescence 59.0 83.6 50.0 65.2 - Write back of obsolescence (93.4) (90.7) (64.8) (85.5) - Written off 98.7 119.1 89.4 111.1 Telecommunication expenses 38.4 52.2 37.6 50.5 Expenses arising from leases: - Low-value assets (Note 15) 39.6 37.8 39.3 37.5 Research and development expenses 121.8 76.4 105.7 69.5 * Staff costs includes the remuneration of the Executive Directors amounted to RM3.9 million (2022: RM4.3 million) for the Group and the Company. The estimated monetary value of benefits received by the Directors was RM588,150 (2022: RM441,980) for the Group and the Company. All non-audit services were procured competitively in accordance with TNB Procurement Policies and Procedures. Non-audit services can be offered by the external auditors of the Group if there are clear efficiencies and value added benefits to the Group. 34 STAFF COST Accounting Policy Short Term Employee Benefits Wages, salaries, paid annual leave, bonuses, and non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period