92 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 19 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment and write off of property, plant and equipment (continued) Financial year ended 31 December 2021 a) FGV Refineries Sdn. Bhd. (“FGV Refineries”) In the previous financial year, the continuing loss position in a refinery was identified as indicator for impairment for the assets. Based on the impairment assessment, the recoverable amount of the said refinery was RM8,554,000, which resulted the impairment loss of RM21,000,000 for property, plant and equipment. The impairment loss had been recognised as the Group’s impairment of non-financial assets and had been included as impairment loss within the Plantation Sector in the Group’s segment reporting (Note 18). The recoverable amount was determined using value-in-use calculation based on cash flow projections with the following key assumptions: Key assumptions FY2022 FY2023 FY2024 FY2025 to perpetuity Tolling processed (MT) 240,000 per annum Tolling rate (RM/MT) Variable fee – RM53/MT (based on CPO received and processed) Fixed fee – RM20/MT on available capacity Processing cost (RM/MT) 72.8 74.06 75.32 75.32 Capital expenditure (RM’000) 6,452 2,185 1,500 1,500 Discount rate (post tax) 8.5% Terminal growth rate 2%
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