2. CHANGES IN ACCOUNTING POLICIES (CONT’D.) 2.2 Standards and interpretations issued but not yet effective The standards and interpretations that are issued but not yet effective up to the date of issuance of the Group’s and the Company’s financial statements are disclosed below. The Group and the Company intend to adopt these standards, if applicable, when they become effective. Effective for annual periods Description beginning on or after Amendments to MFRS 16: Lease libility in a Sales and Leaseback 1 January 2024 Amendments to MFRS 101: Classification of Liabilities as Current and Non-current 1 January 2024 Amendments to MFRS 107 and MFRS 7: Supplier Finance Arrangements 1 January 2024 Amendments to MFRS 121: Lack of Exchangeability 1 January 2025 Amendments to MFRS 10 and MFRS 128: Sales or Contribution of Assets between Deferred an Investor and its Associate or Joint Venture The directors expect that the adoption of the above standards and interpretations will have no material impact on the financial statements in the period of application. 3. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES Estimates, assumptions concerning the future and judgements are made in the preparation of the financial statements. The estimates, assumptions and judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed as follows: (a) Impairment of property, plant and equipment and right-of-use assets The Group and the Company review the carrying amounts of the property, plant and equipment and right-of-use assets at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the Group and the Company shall estimate the recoverable amount of CGU or groups of CGU. The recoverable amount is measured at the higher of fair value less costs of disposal (FVLCD) or value-in-use (VIU). Where the recoverable amounts of CGU or groups of CGU is determined on the basis of FVLCD, the fair values are based on valuations by independent professional valuers which were derived from comparisons with recent transactions involving other similar vacant agricultural land in the vicinity, size, tenure of title and the related valuation adjustments made by independent professional valuers, and from the income capitalisation method derived using assumptions on fresh fruit bunches (FFB) yields, long term average crude palm oil (CPO) prices, cost of production and an appropriate rate of return over the cropping life of the oil palms. Changes to any of these assumptions would affect the amount of impairment losses. 215 NOTES TO THE FINANCIAL STATEMENTS Integrated Report 2023
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