liability for at least 12 months after the statement of financial position date. Where the terms of a financial liability are renegotiated and the Group issues equity instruments to a debt holder to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in statement of comprehensive income, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued, if any. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawdown. The transaction costs are amortised over the tenure of the loan and recognised in the statementof profit or loss. Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets. All other borrowing costs are recognised in the statement of profit or loss in the period in which they are incurred. Government loans, where the interest rate is below the market interest rate, the differential between the initial carrying value of the loan based on market rate and the Government rate is recognised as a deferred income and is credited to the statement of profit or loss over the period necessary to match the interest costs. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 267 26 BORROWINGS (CONTINUED) Note Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Current Secured: - Short term loans 392.6 394.2 0 0 - Term loans (a) 1,031.0 827.8 0 0 - Bonds (b) 1,130.3 486.0 0 0 Unsecured: - Short term loans 4,266.7 5,662.5 4,019.1 5,384.8 -