130 / 220
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NOTES TO THE FINANCIAL STATEMENTS
31 MARCH 2018
fInanCIal StatementS
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(e) Goodwill
Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of business
combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent
liabilities. Following the initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events or
changes in circumstances indicate that the carrying value may be impaired. Gains and losses on the disposal of
an entity include the carrying amount of goodwill relating to the entity sold.
(f)
Biological assets
(i)
Oil palm planting expenditure
All expenses incurred in land preparation, planting and developing of oil palm up to maturity are capitalised as
biological assets. A portion of the indirect overheads which include general and administrative expenses incurred
on immature plantation is similarly capitalised under biological assets until such time when the plantation attains
maturity at the age of 36 months. All expenses subsequent to maturity are recognised in the profit or loss. Upon
attaining maturity, oil palm planting expenditure is amortised over 20 - 25 years. Replanting expenditure and
nursery assets is capitalised under oil palm planting expenditure in the year in which it is incurred until maturity.
(ii) Pineapple planting expenditure
New estate development expenditure is capitalised until the plants attain maturity, after which time the
amount capitalised will be charged to the profit or loss based on the area harvested. Replanting expenditure
consists of expenses incurred from the stage of clearing to maturity. Replanting expenditure is capitalised
and will be charged to the profit or loss based on area harvested upon attaining maturity.
(g) Foreign currencies
(i)
Functional and presentation currency
The individual financial statements of each entity in the Group are measured using the currency of the primary
economic environment in which the entity operates (“the functional currency”). The consolidated financial
statements are presented in Ringgit Malaysia (“RM”), which is also the Company’s functional currency.
(ii) Foreign currency transactions
Transactions in foreign currencies other than the Company’s functional currency (foreign currencies) are
recorded in the functional currencies at exchange rates approximating those ruling at the transaction dates.
At each reporting date, monetary items denominated in foreign currencies are translated at the rates prevailing
on the reporting date. Non-monetary items carried at fair value that are denominated in foreign currencies are
translated at the rates prevailing on the date when the fair value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign currency are not translated.