FGV Annual Report 2014

46 Provisions Group Provision for asset retirement Provision for termination costs Total RM’000 RM’000 RM’000 2014 At 1 January 32,373 – 32,373 Unwinding of discount 38 – 38 Payment made during the financial year (74) – (74) Reversal of provision (2,000) – (2,000) Currency translation differences 360 – 360 At 31 December 30,697 – 30,697 Less: payable within 12 months (87) – (87) Non-current 30,610 – 30,610 2013 At 1 January 4,806 106 4,912 Acquisition of subsidiary 27,000 – 27,000 Unwinding of discount 261 – 261 Payment made during the financial year (43) (105) (148) Currency translation differences 349 (1) 348 At 31 December 32,373 – 32,373 Less: payable within 12 months (82) – (82) Non-current 32,291 – 32,291 Provision for asset retirement relates to the Group’s fatty acids manufacturing facility in USA and mills in Malaysia. The asset retirement obligation was based on detailed estimates, adjusted for inflation, escalated to the estimated spending dates, and then discounted using an average credit adjusted risk-free interest rate of which represents management’s best estimate of the liability. Actual costs to be incurred in future periods may vary from estimates, given the inherent uncertainties in evaluating certain exposures subject to the imprecision in estimating the asset retirement obligation. 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 303