FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 344 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 62 FIRST TIME ADOPTION OF MFRS FRAMEWORK (CONTINUED) Impact of first time adoption of MFRS framework (continued) (a) MFRS 15 and 141 (continued) Transitioning adjustments arising from MFRS 15 and MFRS 141 The following tables present the reconciliations from FRS to MFRS for the respective periods noted for equity, including adjustments arising from initial application of MFRS 15 ‘ Revenue ’ and MFRS 141 ‘ Agriculture ’ . Reconciliation of equity Group Note 1.1.2017 (Date of transition) RM’000 31.12.2017 RM’000 Equity as reported under FRS 8,197,541 7,860,443 Add/(Less): Transitioning adjustments arising from MFRS 15: Change in timing of revenue recognised due to additional performance obligation identified 62(a)(i) (418) (4,972) Deferred tax arising from MFRS 15 transitioning adjustments 100 (18) Add/(Less): Transitioning adjustments arising from MFRS 141: Remeasurement of biological asets to fair value 62(a)(v) 68,831 54,338 Deferred tax arising from MFRS 141 transitioning adjustments (16,519) (13,041) Change in recognition of forest to reorganisation reserve (28,707) (23,724) Equity on transition 8,220,828 7,873,026 No adjustments made to Company’s equity arising from initial application of MFRS 15 ‘ Revenue ’ and MFRS 141 ‘ Agriculture ’ . (i) Revenue – Determining separate performance obligations Under MFRS 15, certain contracts for the sale of palm oil products and sugar include bundled deliverables, such as the delivery of the goods on board vessels or tankers being bundled with provision of transportation or freight services. For each deliverable to be a separate performance obligation, it needs to be distinct, where the goods or service is distinct from the context of the contract as well being enjoyable or beneficial to the customer on its own.