130 Annual Report 2022 SIGNIFICANT ACCOUNTING POLICIES (CONT’D) 3. Notes to the Financial Statements For the Financial Year Ended 30 September 2022 Property development costs (q) Property development costs are determined on a specific identification basis. Property development costs comprise costs associated with the acquisition of land and all costs directly attributable to development activities or that meet the definition of inventories are recognised as an asset and stated at lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the costs of completion and applicable variable selling expenses. The asset is subsequently recognised as an expense in profit or loss when or as the control of the asset is transferred to the customer over time or at a point in time. Property development cost of unsold unit is transferred to completed development unit once the development is completed. Inventories (r) Completed properties (i) Inventories are valued at the lower of cost and net realisable value. The cost of completed development properties is determined based on the specific identification basis and includes land, construction and appropriate development overheads. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Crude palm oil and palm kernel (ii) Crude palm oil and palm kernel includes direct labour, an appropriate share of production overheads and the fair value attributable to agriculture produce at year end in accordance with MFRS 141 Agriculture. The fair values of biological assets harvested from the Group’s plantation and sold during the year are recorded as part of the biological assets movements in Note 25 and as part of changes in fair values of biological assets in determining profit. Materials and goods (iii) Inventories are valued at the lower of cost and net realisable value. The cost of inventories is based on the specific identification, first-in first-out and weighted average principles, and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. In the case of work-in-progress and finished goods, cost includes raw materials, direct labour and an appropriate allocation of production overheads based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
RkJQdWJsaXNoZXIy NDgzMzc=