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. 195 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) (o) Land held for property development Land held for property development consists of land on which no significant development work has been undertaken or where development activities are not expected to be completed within the normal operating cycle. Such land is classified as non-current asset and is stated at lower of cost and net realisable value. Costs associated with the acquisition of land include the purchase price of the land, professional fees, stamp duties, commissions, conversion fees and other relevant levies. Land held for property development is transferred to property development costs (under current assets) where development activities have commenced and where the development activities can be completed within the normal operating cycle. (p) Property development costs 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 costs of unsold unit is transferred to completed development unit once the development is completed. (q) Inventories (i) Completed properties 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. (ii) Crude palm oil and palm kernel Crude palm oil and palm kernel include 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.
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