Notes to the Financial Statements for the Financial Year Ended 30 September 2024 Sustaining Lives, Empowering Communities Governance That Inspires Confidence Financial Insights Through Numbers Empowering Ownership PG. 193 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) (i) Property, plant and equipment (Cont’d) (iii) Depreciation Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment and the principal annual rates are as follows: Long-term leasehold land Over lease period of 78 to 99 years Buildings 2% to 12.5% Motor vehicles, plant and machinery 5% to 20% Furniture, fittings and equipment 10% to 25% Plantation infrastructure 12.5% Bearer plants 20 years, or over the lease period if shorter Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until these assets are ready for their intended use. Bearer plants are classified as immature until it is available for harvest. At that point, bearer plants are measured at amortised cost and depreciated over their useful life. The residual values useful lives and methods of depreciation of property plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. (j) Property, plant and equipment under hire-purchase arrangement Property, plant and equipment acquired under hire-purchase arrangement are capitalised in the financial statements and the corresponding obligations treated as liabilities. Finance charges are allocated to profit or loss to give a constant periodic rate of interest on the remaining hirepurchase obligations. (k) Prepaid lease payments The upfront payments for right to use the leasehold land over a predetermined period are accounted for as prepaid lease payments that are stated at cost less accumulated amortisation, are amortised over the lease term on a straight-line basis, except for leasehold land classified as investment property. (l) Intangible assets (i) Goodwill Goodwill is initially measured at cost less any accumulated impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.
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