FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 189 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 3 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The principal accounting policies applied in the preparation of financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (continued) (l) Intangible assets (continued) The nature of the intangible assets are as follows: (i) Brand relates to sugar brand 'Prai' and consumer brands 'Saji', 'Seri Pelangi', 'SunFlower', 'SunBear', and 'Yangambi' acquired as part of the acquisition of the related business. (ii) Licenses is related to a license for subsidiaries to use certain technologies. (iii) Lease agreement is related to a lease agreement for a subsidiary to lease several assets to a customer, acquired as part of a business combination. Twin Rivers Technologies Holdings, Inc. ("TRTH"), is the lessor of a portion of its facility to a tenant under a non-cancellable operating lease. This property includes natural oil tanks and an oil pipeline system. (iv) Customer relationships are related to contracts for a subsidiary to sell its product to several customers. (v) Software relates to information technology ("IT") used within the Group. (vi) Intellectual property rights relates to patents for the commercialisation of high quality graphene. (vii) Land use rights relates to oil palm plantations in Indonesia. (viii) Intangible assets under development relates to IT system under development. (m) Biological assets Forest Standing timber on privately held forest land is characterised as biological asset. The Group recognised forest as biological asset subsequent to the acquisition of plantation estates owned by FELDA pursuant to the Land Lease Agreement (Note 47), where the plantation estates acquired included timber which already existed on these estates. Under the capital maintenance method, forest is capitalised and not amortised, and are shown as a non-current asset net of accumulated impairment losses. Biological assets will be subject to accelerated depreciation if the forest area has been earmarked by the Directors for replanting with a different crop, after writing down the carrying amount to its recoverable amount. When the forest area is replanted with a different crop, the carrying value of the existing biological assets is expensed off in profit or loss and the planting development costs is recognised in accordance with FRS 116 "Property, Plant and Equipment" (Note 3(j)).