141 AUDITED FINANCIAL STATEMENTS 2021 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 32 INVENTORIES Group 2021 2020 RM’000 RM’000 – Finished goods 954,609 710,907 – Raw materials 748,108 354,700 – Work in progress 88,020 31,859 – Chemicals 59,226 31,914 – Stores, consumables and replaceable products 64,440 63,236 1,914,403 1,192,616 33 BIOLOGICAL ASSETS Oil Palm 2021 2020 Group RM’000 RM’000 At 1 January 57,001 45,766 Transfer to inventory (57,001) (45,766) Transfer from property, plant and equipment (Note 20) 2,228 – Fair value changes 113,781 57,012 Foreign exchange movement 10 (11) At 31 December 116,019 57,001 Analysed as: Non-current 2,228 – Current 113,791 57,001 116,019 57,001 Oil Palm Oil palm represents the fresh fruit bunches (“FFB”) of up to 15 days prior to harvest for use in the Group’s palm product operations. During the financial year ended 31 December 2021, the Group harvested approximately 3,975,591 metric tonnes (“MT”) of FFB (2020: 4,287,626 MT). The quantity of unharvested FFB of the Group as at 31 December 2021 included in the fair valuation of FFB was 126,653 MT (2020: 101,460 MT). In arriving at the fair value, the Group adopted the income approach which considers the net present value of all directly attributable cash inflows, cash outflows and imputed contributory asset charges where no actual cash flows associated with the use of assets essential to the agricultural activity. Changes to the assumed prices of the FFB and tonnage included in the valuation will have a direct effect on the reported valuation. The Groups biological assets computation is a Level 3 fair value estimation. If the selling prices of FFB or tonnage changed by 10%, the Group's fair value of FFB would have increased or decreased by approximately RM25.98 million (2020: RM7.47 million).
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