FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 278 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 29 BIOLOGICAL ASSETS (CONT’D.) Net book value of biological assets on land without title is RM115,180,000 (2012: RM137,888,000). * Included in write off is biological assets written off due to land reclaimed by FELDA amounting to RM25,625,000 (Note 45). Impairment test for biological assets – non-current Changes in pricing assumption was identified as indicators for a further impairment test to be performed for the affected biological assets in several planted areas previously earmarked in 2012 for replanting with a different crop. The recoverable amount of the affected planted area biological assets, each being identified as an individual CGU, is determined based on value in use calculation using a discounted cash flow calculation using cash flow projections based on financial budgets approved by the Directors for the period up to the change of crop. The key assumptions used for the value in use calculation are as follows: (h) Discount rate of 11.5%, which reflects specific industry risks relating to the plantation business, adjusted for other risk in respect of the planted area, for instance, size and age. (i) Other key assumptions being similar to the key assumptions used to compute the fair value of the LLA liability (Refer Note 45). Based on the assessment done, using the key assumptions above, the Group has recognised a further impairment of RM663,000 (2012: RM4,316,000) which is recorded as an impairment loss in costs of sales for the financial year ended 31 December 2013. The balance carrying amount continues to be subject to accelerated depreciation over the period to the year of planned replanting with a different crop. 30 AVAILABLE FOR SALE FINANCIAL ASSETS Group 2013 RM’000 At 1 January - Acquisition of subsidiaries 211,575 At 31 December 2013 211,575 Available-for-sale financial assets comprise the following: Quoted equity securities: - In Malaysia 4,101 Unquoted equity securities: - In Malaysia 187,302 Quoted unit trust securities: - Outside Malaysia 20,172 211,575 Available-for-sale financial assets are denominated in the following currencies: RM’000 - Ringgit Malaysia 191,403 - Pakistan Rupee 20,172 211,575 The fair values of unquoted securities are based on the average of price to book ratio of a similar equities in the market None of these financial assets is either past due or impaired.