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Notes To The
Financial Statements
As at 31 March 2019
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(d) Investment in associate companies (cont’d.)
The financial statements of the associate are prepared as of the same reporting date as the Company.
Where necessary, adjustments are made to bring the accounting policies in line with those of the
Group.
In the Company’s separate financial statements, investments in associate are stated at cost less
impairment losses. On disposal of such investments, the difference between net disposal proceeds
and their carrying amounts is included in profit or loss.
(e) Property, plant and equipment
All items of property, plant and equipment are initially recorded at cost. The cost of an item of
property, plant and equipment is recognised as an asset, if and only if, it is probable that future
economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably.
Bearer plants are living plants used in the production or supply of agricultural produce; are expected
to bear produce for more than one period; and have a remote likelihood of being sold as agricultural
produce, except for incidental scrap sales.
Bearer plants mainly include mature and immature oil palm plantations. Immature plantations
includes costs incurred for field preparation, planting, fertilising and maintenance, capitalisation of
borrowing costs incurred on loans used to finance the developments of immature plantations and an
allocation of other indirect costs based on planted hectares.
Subsequent to recognition, property, plant and equipment are measured at cost less accumulated
depreciation and accumulated impairment losses. When significant parts of property, plant and
equipment are required to be replaced in intervals, the Group recognises such parts as individual
assets with specific useful life and depreciation, respectively. Likewise, when a major inspection is
performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement
if the recognition criteria is satisfied. All other repair and maintenance costs are recognised in profit
or loss as incurred.
Freehold land has an unlimited useful life and therefore is not depreciated. Land held on long lease is
held on a lease with an unexpired period of 50 years or more. Mature plantations are depreciated on
a straight line basis and over its estimated useful life of 25 years, upon commencement of commercial
production.
financial
statements
117