What does “Changes in Fair Value of Biological Assets” on the income statement represent and how is it determined?
Biological assets include mature and immature oil palm plantations. In accordance with FRS41, biological assets are measured at each balance sheet date at its fair value less point-of-sale costs from initial recognition up to point of harvest. The amount was determined based on independent professional valuations using the discounted cash flows of the underlying biological assets. The gains or losses due to changes in fair value are non-cash in nature.
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