FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 339 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 EXAMINED OUR NUMBERS 62 FIRST TIME ADOPTION OF MFRS FRAMEWORK (CONTINUED) Transition from FRS to MFRS (continued) (ii) First time application of MFRS 9 The Group and the Company elected the short-term exemption on first-time application of MFRS 9 in accordance with MFRS 1. The comparative information in the Group’s and the Company’s first MFRS financial statements in respect of items within the scope of MFRS 9 are accounted for based on the requirements of FRS 139 ‘ Financial Instruments: Recognition and Measurement ’ . Accordingly, the comparative information in the Group’s and the Company’s first MFRS financial statements in respect of these items have not been restated to comply with the requirements of MFRS 9. See Note 62(b) on change in accounting policy of the Group arising from this short-term exemption. (iii) MFRS 141 “ Agriculture ” ( “ MFRS 141 ” ) As at 1 January 2017, the biological assets are measured at fair value less costs of disposal. Changes in fair value less costs of disposal are recognised in profit or loss. Harvested fresh fruit bunches are transferred to inventories at fair value less costs to sell when harvested. The effects from the adoption of MFRS 141 on the financial statements are disclosed in Note 62(a).