FGV Audited Financial Statements 2019

103 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 20 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Group Freehold land RM’000 Leasehold land RM’000 Buildings, structures and renovations RM’000 Plant and machinery RM’000 Motor vehicles RM’000 Office equipment, tools and other equipment RM’000 Assets under construction RM’000 Bearer plants RM’000 Total RM’000 2018 (continued) Accumulated depreciation/ impairment At 1 January 2018, as previously stated 184 150,843 551,862 929,932 187,466 155,686 - 1,568,227 3,544,200 Effects of adoption of MFRS 16 - (150,843) - - - - - - (150,843) At 1 January 2018, as restated 184 - 551,862 929,932 187,466 155,686 - 1,568,227 3,393,357 Charge for the financial year - - 143,155 230,140 34,004 37,703 - 202,268 647,270 (Reversal)/impairment loss - - 13,092 20,369 944 30 103,000 78,634 216,069 Disposals - - - (142) (622) (24) - - (788) Write offs - - (11,680) (12,577) (13,029) (7,164) - (56,203) (100,653) Reclassification - - 55 (42) 59 (72) - - - Transfer from assets held for sale - - 7,933 1,005 - 1,570 - - 10,508 Exchange differences - - 155 2,623 (57) 222 - 1 2,944 At 31 December 2018 184 - 704,572 1,171,308 208,765 187,951 103,000 1,792,927 4,168,707 Net book value at 31 December 2018 49,364 - 1,748,717 1,985,927 161,777 261,225 1,142,681 3,151,482 8,501,173 Net book value at 1 January 2018 48,973 - 1,804,394 2,051,003 167,370 135,281 1,053,634 3,130,971 8,391,626 Included in the additions of property, plant and equipment were RM47,123,000 (2018: RM2,875,000) in relation to capitalised finance cost for bearer plants at average finance rate of 4.60% (2018: 5.8%) and RM7,264,000 (2018: RM28,238,000) in relation to capitalised borrowing costs for other qualifying assets at average finance rate of 4.74% (2018: 4.61%). As at 31 December 2019, the carrying amount of property, plant and equipment under land arrangements with FELDA amounted to RM411,571,000 (2018: RM403,648,000). FELDA is in the midst of applying the land titles from respective state authorities. Net book value of the property, plant and equipment pledged as security to borrowings amounted to RM279,335,000 (2018: RM282,712,000).