FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 FINANCIAL STATEMENTS 217 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 20 INTANGIBLE ASSETS (CONTINUED) (b) Impairment test for intangible assets (other than goodwill) (i) Refining palm oil operation in China In the previous financial year, difficult operating conditions and continuing losses in a subsidiary, FGV China Oils Ltd., were identified as indicators for an impairment test to be performed for the non-financial assets in relation to the CGU for palm oil refining operations in China. As a result of the impairment assessment, RM11,818,000 of impairment loss had been recognised for intangible assets (other than goodwill) in respect of FGV China Oils Ltd.. The other results, key assumptions and the sensitivity analysis for the impairment assessment are disclosed in Note 18 to the financial statements. 21 INVESTMENT IN SUBSIDIARIES Company 2017 RM’000 2016 RM’000 At cost less accumulated impairment (i) Malaysian quoted shares: Ordinary shares: At 1 January/31 December 270,026 270,026 (ii) Malaysian unquoted shares: Ordinary shares: At 1 January 6,560,027 6,532,633 Additions 11,679 26,452 Disposal (567,898) - Conversion of amounts due from subsidiaries into ordinary shares (Note 26) 567,898 942 At 31 December 6,571,706 6,560,027 (iii) Foreign unquoted shares: At 1 January 110,419 190,571 Impairment loss (Note 21(d)) - (80,152) At 31 December 110,419 110,419 (iv) RCPS/RCCPS: At 1 January 1,796,334 2,322,334 Redemption - (526,000) At 31 December 1,796,334 1,796,334 (v) Capital contribution to subsidiaries: At 1 January 15,600 15,600 Liquidation of a subsidiary (118) - At 31 December 15,482 15,600 Total 8,763,967 8,752,406 Market value of Malaysian quoted shares, based on Group’s effective interest 316,316 389,609 The disclosure of market value of Malaysia quoted shares is based on Level 1 fair value computation.