FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 218 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 19 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 2017 (continued) Accumulated depreciation/ impairment At 1 January 2017 236 110,257 506,187 702,501 161,253 146,464 - 1,571,700 3,198,598 Charge for the financial year - 40,487 118,636 219,502 40,609 33,294 - 120,383 572,911 (Reversal)/impairment loss (52) 125 (103) 9,902 - (17) - 4,562 14,417 Disposals - - - (1,236) (1,570) (301) - - (3,107) Write offs - - (7,735) (46,173) (12,313) (6,789) - (128,388) (201,398) Reclassification - - (58,087) 72,447 - (14,360) - - - Exchange differences - (26) (7,036) (26,843) (264) (2,605) - (30) (36,804) Transfer to assets held for sale - - - (168) (249) - - - (417) At 31 December 2017 184 150,843 551,862 929,932 187,466 155,686 - 1,568,227 3,544,200 Net book value at 31 December 2017 48,973 2,054,496 1,804,394 2,051,003 167,370 135,281 1,053,634 3,130,971 10,446,122 Net book value at 1 January 2017 51,822 2,097,698 1,715,619 2,030,520 186,024 164,511 792,847 3,035,070 10,074,111 Included in the additions of property, plant and equipment were RM2,875,000 (2017: RM2,841,000) in relation to capitalised finance cost for bearer plants at average finance rate of 5.8% (2017: 5.8%) and RM28,238,000 (2017: RM25,525,000) in relation to capitalised borrowing costs for other qualifying assets at average finance rate of 4.61% (2017: 4.78%). As at 31 December 2018, the carrying amount of property, plant and equipment under land arrangements with FELDA amounted to RM403,648,000 (2017: RM486,499,000). 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 RM282,712,000 (2017: RM292,838,000).