FGV Annual Report 2014

15 Loss from Discontinued Operations Financial year ended 31 December 2014 (i) Disposal of Malaysia Cocoa Manufacturing Sdn. Bhd. In the previous financial year, the Group had approved a proposal to exit the cocoa business of its wholly-owned subsidiary company, Malaysia Cocoa Manufacturing Sdn. Bhd. (“MCM”) with the disposal of 100% equity as the preferred option. The result of MCM in the previous financial year was included as part of the Group’s share of results of an associate, Felda Holdings Berhad (“FHB”). In the current financial year, operations ceased with effect from 1 September 2014. Certain property, plant and equipment were reclassified as assets held for sale. (ii) Cessation of Felda Farm Products Sdn. Bhd. In the previous financial year, the Board of Directors of a subsidiary company, Felda Farm Products Sdn. Bhd. (“FFP”) approved a plan to gradually cease the operations of FFP by way of disposal of assets to a significant shareholder of FGVH and a related company, FGVPM. Following the disposal of assets in December 2013, FFP had ceased operations. The result of FFP in the previous financial year was included as part of the Group’s share of results of an associate, FHB. In the current financial year, the income statement of the discontinued operations of FFP are presented separately from continuing operations, as discontinued operations. (iii) Profit before taxation from discontinued operations is stated after charging/(crediting) the following: 2014 2013 RM’000 RM’000 Property, plant and equipment: – depreciation 1,780 – – write offs 14 – – gain on disposal (8,088) – Staff costs 3,705 – Voluntary separation scheme payment 6,703 – Cost of raw materials and consumables used 5,775 – Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 219