AUDITED FINANCIAL STATEMENTS 2022 145 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 31 BIOLOGICAL ASSETS Group Oil Palm RM’000 Dairy Cow RM’000 Total RM’000 2022 At 1 January 113,791 2,228 116,019 Transfer to inventory (113,791) - (113,791) Addition - 502 502 Fair value changes 86,726 (316) 86,410 Sales of livestock - (898) (898) Livestock written off - (25) (25) Foreign exchange movement (28) - (28) At 31 December 86,698 1,491 88,189 2021 At 1 January 57,001 - 57,001 Transfer to inventory (57,001) - (57,001) Transfer from property, plant and equipment (Note 19) - 2,228 2,228 Fair value changes 113,781 - 113,781 Foreign exchange movement 10 - 10 At 31 December 113,791 2,228 116,019 Analysed as: 2022 RM’000 2021 RM’000 Non-current 1,491 2,228 Current 86,698 113,791 88,189 116,019 Oil Palm Oil palm represents the fresh fruit bunches (“FFB”) of up to 15 days prior to harvest for use in the Group’s palm product operations. During the financial year ended 31 December 2022, the Group harvested approximately 3,991,555 metric tonnes (“MT”) of FFB (2021: 3,975,591 MT). The quantity of unharvested FFB of the Group as at 31 December 2022 included in the fair valuation of FFB was 140,660 MT (2021: 126,653 MT). In arriving at the fair value, the Group adopted the income approach which considers the net present value of all directly attributable cash inflows, cash outflows and imputed contributory asset charges where no actual cash flows associated with the use of assets essential to the agricultural activity. Changes to the assumed prices of the FFB and tonnage included in the valuation will have a direct effect on the reported valuation. The Groups biological assets computation is a Level 3 fair value estimation. If the selling prices of FFB or tonnage changed by 10%, the Group’s fair value of FFB would have increased or decreased by approximately RM20.90 million (2021: RM25.98 million).
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