FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 224 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 19 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment of property, plant and equipment (continued) Financial year ended 31 December 2018 (continued) (c) During financial year, FGV Palm Industries Sdn. Bhd. (formerly known as Felda Palm Industries Sdn. Bhd.), an indirect subsidiary of Company, had close down two mills as part of the Group’s rationalisation plan. As a result, an impairment of RM9,877,000 is recognised in Group’s impairment of non-financial assets of the Group. Financial year ended 31 December 2017 Continuing losses in an indirect subsidiary, Felda Rubber Industries Sdn. Bhd., was identified as indicator for an impairment test to be performed for property, plant and equipment in relation to the CGU for rubber processing operation. The recoverable amount of the CGU was determined based on independent valuation carried out by registered professional valuer. As a result of the impairment assessment, the recoverable amount of the CGU is RM23,900,000. Hence, an impairment of RM10,000,000 had been recognised in profit or loss of the Group in the previous financial year. The amount has been included as part of the impairment loss of Plantation Sector in the Group’s segment reporting (Note 18).