Sample Disclosure – Accounting Policy On Plantation Development Expenditure (28 April 2009)

Plantation Development Expenditure

Plantation development expenditure comprises assets held for plantation development activities. These assets include land and buildings used for the purpose of plantation development, infrastructure costs such as roads and bridges attached on the plantation estates, cost of planting and development of crops.

This is stated at cost less accumulated depreciation and impairment losses, if any. Freehold land is stated at cost and is not depreciated.

Depreciation is calculated on the straight-line method to write off the cost over their estimated useful lives. The principal annual rates of depreciation are:

Freehold buildings                               2%

Leasehold buildings                             over the lease period

Bridges and roads                                5%

Mature plantations                               25 years

Cost of preparation of agriculture land, planting, replanting and upkeep of crops, together with other incidental costs are capitalised as immature plantations and transferred to mature plantations account when the trees have matured and meet the criteria for commercial production.

Mature plantations are amortised over the estimated productive life of the trees estimated to be 25 years. The period of the plantations’ yield was determined by vegetative growth calculated and estimated by the management.

Replanting expenditure is expensed to the income statement immediately in the year in which the expenditure is incurred.

Sample Disclosure – Accounting Policy Of Self-generating And Regenerating Assets (24 April 2009)

Self-generating and regenerating assets (SGARAs)

Increment or decrement in the net market values of SGARAs is recognised as revenue or cost in the income statement of the year in which the increment or decrement occurs.

Sample Disclosure – Accounting Policy On Revenue From Landscaping And Maintenace Work (24 April 2009)

Revenue from landscaping and maintenance work

Revenue form landscaping and maintenance work is recognised upon completion at balance sheet date. Where the outcome of the work cannot be measured reliably, revenue is recognised to the extent of the relevant expenses or costs of the work that are recoverable.

Sample Disclosure – Change In Accounting Estimate On Depreciation Charges (19 February 2009)

Change In Accounting Estimates

The revised FRS 116 – Property, Plant and Equipment requires the review of the residual value and the useful life of an asset at least at each financial year end. The Group revised the estimated residual values of certain motor vehicles with effect from (day/month/year).

The revisions were accounted for prospectively as a change in accounting estimates and as a result, the depreciation charges of the Group for the current financial year end have been increased by RMx,xxx,xxx.

Sample Disclosure – Intangible Assets (14 April 2009)


Intangible assets


Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use of the specific software. These costs are amortised over their estimated useful lives. Costs associated with developing or maintaining computer software programmes are recognised as an expense when incurred. Cost that are directly associated with identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Costs include employee costs incurred as a result of developing software and an appropriate portion of relevant of overheads. Costs which enhances or extends the performance of computer software programme beyond their original specifications is recognised as a capital improvement and added to the original cost of software. Computer software development costs recognised as assets are amortised using straight line method over their estimated useful lives, not exceeding a period of 10 years.