FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 204 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 18 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Group Freehold land RM’000 Leasehold land RM’000 Buildings, structures and renovations RM’000 Plant and machinery RM’000 Motor vehicles RM’000 Office equipment, tools and other equipment RM’000 Assets under construction RM’000 Bearer plants RM’000 Total RM’000 2016 (continued) Accumulated depreciation/ impairment At 1 January 2016 236 78,167 369,289 483,317 127,897 111,878 783 1,415,281 2,586,848 Charge for the financial year - 32,397 123,609 211,015 43,719 33,632 - 233,420 677,792 (Reversal)/ impairment loss - (319) 6,060 80,330 - 1,750 - - 87,821 Disposals - - - (389) (1,517) (200) - - (2,106) Write offs - - (36,765) (31,587) (11,144) (6,378) - (77,519) (163,393) Reclassification - - 39,162 (45,008) 2,202 3,644 - - - Exchange differences - 12 5,480 6,289 96 2,227 (783) - 13,321 Transfer to assets held for sale - - (648) (1,466) - (89) - - (2,203) At 31 December 2016 236 110,257 506,187 702,501 161,253 146,464 - 1,571,182 3,198,080 Net book value at 31 December 2016 51,822 2,097,698 1,715,619 2,030,520 186,024 164,511 792,847 3,034,733 10,073,774 Included in the additions of property, plant and equipment were RM Nil (2016: RM6,651,000) in relation to grant received from Government for plant and machinery, RM2,841,000 (2016: RM2,030,000) in relation to capitalised finance cost for bearer plants at average finance rate of 5.8% (2016: 5.8%) and RM25,525,000 (2016: RM10,506,000) in relation to capitalised borrowing costs for other qualifying assets at average finance rate of 4.78% (2016: 4.16%). As at 31 December 2017, the carrying amount of property, plant and equipment under land arrangements with FELDA amounted to RM486,499,000 (2016: RM466,425,000). FELDA is in the midst of applying the land titles from respective state authorities. Net book value of the property, plant and equipment pledged as security to borrowings amounted to RM292,838,000 (2016: RM96,709,000).