FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 238 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 20 INVESTMENT PROPERTIES CONT’D.) As at 31 December 2013, the carrying amount of investment properties without land titles is RM8,330,000 (2012: RM nil). The fair value of the investment property above as at 31 December 2013 is estimated at RM129,628,000 (2012: RM44,730,000) based on an independent valuation carried out by a registered professional valuer using the comparison method by reference to recent transactions involving other similar properties in the vicinity. The valuation is a level 2 fair value estimation. No rental income and direct expenses were recognised in profit or loss during the financial year (2012: nil). (a) Financial year ended 31 December 2013 (i) By way of a written award of compensation dated 31 December 2013, the Perlis State Government was obliged to pay RM43.04 million as compensation for the compulsory acquisition of Lot 194 Mukim Chuping, Perlis from a subsidiary of the Company. As a result, a gain on disposal of RM4,508,000 was recognised. (ii) As at 31 December 2013, the fair value of a leasehold land amounting to RM1,622,000 was fully impaired based on the size of the land area, restriction on use and likelihood of other parties being able to commercialise the said property. (b) Financial year ended 31 December 2012 Following the cessation of sugar cane planting activities at a subsidiary, the leasehold land was reclassified to investment properties as the Directors currently intend to hold it for capital appreciation. 21 INTANGIBLE ASSETS Customer Intangible Completed Lease relation- Trade assets under Goodwill Brand technology agreement ships name Software development Total Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Net book value 2013 At 1 January 2013 576,240 76,355 1,487 2,303 19,200 - 5,749 25,765 707,099 Acquisition of subsidiaries (Note 22) 127,238 - - - - - 42,989 - 170,227 Additions - - - - - - 6,223 2,141 8,364 Amortisation charge - (3,226) (421) (193) (5,443) - (1,781) - (11,064) Exchange differences - - 105 164 1,366 - - - 1,635 At 31 December 2013 703,478 73,129 1,171 2,274 15,123 - 53,180 27,906 876,261 2012 At 1 January 2012 576,240 79,581 1,683 2,574 1,087 1,521 - - 662,686 Acquisition of subsidiary (Note 22) - - - - - - - 15,837 15,837 Additions - - - - - - 6,217 9,928 16,145 Reversal of impairment - - 258 - 23,387 233 - - 23,878 Amortisation charge - (3,226) (396) (182) (5,116) (1,710) (468) - (11,098) Exchange differences - (58) (89) (158) (44) - - (349) At 31 December 2012 576,240 76,355 1,487 2,303 19,200 - 5,749 25,765 707,099 Expected remaining useful lives (years) - 31 December 2013 17 4 13 4 - 3-5 - 31 December 2012 18 5 14 5 1 5