2. Significant accounting policies (CONT’D.)
2.5 Summary of significant accounting policies (cont’d.)
(d) Property, plant and equipment and depreciation (cont’d.)
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. The difference between the net disposal proceeds, if
any and the net carrying amount is recognised in profit or loss.
(e) Biological assets
The expenditure on new planting and replanting of a different produce crop incurred up to the time
ofmaturity is capitalised. Cost of original produce cropwill bewrittenoff toprofit and loss. Depreciation
charges and external borrowing costs related to the development of new plantations are included as
part of the capitalisation of immature planting costs. Replanting expenditure incurred in respect of
the same crop is charged to profit or loss in the year in which it is incurred. Biological assets are not
amortised.
(f) Inventories
Inventories are stated at the lower of cost and net realisable value, cost being determined on the
weighted average basis. Cost includes all incidentals incurred in bringing the inventories into store;
and in the case of produce stocks, includes harvesting, manufacturing and transport charges, where
applicable. Net realisable value represents the estimated selling price less all estimated costs.
(g) Currency conversion
The Group’s consolidated financial statements are presented in Ringgit Malaysia (RM), which is also
the functional currency of the Company. All transactions are recorded in RM. Each entity in the Group
determines its own functional currency and items included in the financial statements of each entity
are measured using that functional currency.
Transactions in foreign currencies are measured in the respective functional currencies of the
Company and its Subsidiaries and recorded on initial recognition in the functional currencies at
exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities
denominated in foreign currencies are translated at the rate of exchange ruling at the end of the
reporting period.
Non-monetary items denominated in foreign currencies that are measured at historical cost are
translated using the exchange rates at the dates of the initial transactions. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the date when
the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items
at the end of the reporting period are recognised in profit or loss except for exchange differences
arising on monetary items that form part of the Group’s net investment in foreign operations which
are recognised initially in other comprehensive income and accumulated under foreign exchange
currency reserve in equity. The foreign exchange currency reserve is reclassified from equity to profit
or loss of the Group on disposal of the investment in foreign operations.
an n ual repo rt 2015
79
