15 LEASES (CONTINUED) (b) Lease liabilities (continued) The weighted average effective interest rate applicable to the lease liabilities as at the financial year end for the Group and the Company are 5.2% (2022: 5.5%) and 5.7% (2022: 5.8%) per annum respectively. The carrying amounts of the lease liabilities approximate their fair values. Reconciliation of lease liabilities during the financial year is as follows: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million As at the beginning of the financial year 33,278.4 29,241.9 73,805.1 71,190.5 Cash flows (4,015.4) (3,772.8) (7,338.3) (7,689.3) Non-cash changes - Additional lease 15.0 6,491.2 3.7 6,892.6 - Acquisition of subsidiaries (Note 48) 83.8 79.4 0 0 - Capacity payment differences (137.4) (517.7) (507.8) (828.0) - Finance charges (Note 37(b)) 1,636.5 1,756.4 4,043.7 4,239.3 - Reassessmentof lease 0 0 (719.8) 0 As at the end of the financial year 30,860.9 33,278.4 69,286.6 73,805.1 The statement of profit or loss includes the following amounts relating to leases: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Depreciation charge of ROU assets (Note 6) 3,482.0 3,901.8 5,709.6 6,236.0 Finance charges (Note 37 (b)) 1,636.5 1,756.4 4,043.7 4,239.3 Expense relating to leases of low-value assets (Note 33) 39.6 37.8 39.3 37.5 Expense relating to variable lease payments not included in lease liabilities 81.8 443.2 337.4 644.8 16 FINANCIAL ASSETS AT FVOCI Accounting Policy Financial assets at FVOCI are financial instruments and the accounting policy is disclosed in Note 45. Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Financial assets at FVOCI 55.1 70.7 54.3 70.0 NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 247 16 FINANCIAL ASSETS AT FVOCI (CONTINUED) The Group and the Company have irrevocably elected non-trading equity securities above at initial recognition to present its fair value changes in OCI. The Group and the Company consider this