FGV Annual Report 2018

116 EXAMINED OUR NUMBERS FGV HOLDINGS BERHAD REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters (contined) Key audit matters How our audit addressed the key audit matters Impairment assessments of non-financial assets with impairment indicators Management performed impairment assessments of the non-financial assets of the Group, which had impairment indicators, in particular, in respect of FGV Green Energy Sdn. Bhd., FGV Cambridge Nanosystems Ltd., and Asian Plantation Limited Berhad ( “ APL ” ). As a result, impairment losses of RM795.7 million were recognised during the financial year ended 31 December 2018 mainly in respect of property, plant and equipment, intangible assets and asset held for sale of the Group. We focused on this area as the recoverable amounts of the non-financial assets are determined based on discounted cash flows projections, which require judgment on the part of management on the future financial performance and the business plan of those busineses. These are disclosed in Note 19 and 38 to the financial statements. Refer to Note 3(o) in the significant accounting policies, Note 5(iii) in the critical accounting estimates and judgments and Notes 19, 21 and 38 to the financial statements. We have performed the following audit procedures: • We evaluated the reliability of management’s cash flows projections through the review of past trends of actual financial performances against previous forecasted cash flows; • We assessed the reasonableness of the key assumptions, which were used by management in developing the discounted cash flows projections, by comparing against historical data and industry trends; • We examined the sensitivity analysis performed by management on the key assumptions listed above and also the discount rates used to evaluate the impact on the impairment assessment; and • We assessed the adequacy and reasonableness of the disclosures in the financial statements. Based on the above procedures performed, we noted no significant exceptions. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF FGV HOLDINGS BERHAD (Formerly known as Felda Global Ventures Holdings Berhad) (Incorporated in Malaysia) (Company No. 800165-P)