106 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 19 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Significant impairment of property, plant and equipment (continued) Financial year ended 31 December 2022 (continued) b) FGV Dairy Farm Sdn. Bhd. (“FGVDF”) Based on the impairment assessment under the assumptions that only existing cattles would be used in the operation, the cash flows projected a reduction in productivity of the existing cattles as it ages. As the cost of operating the existing farm infrastructure, barn and equipment exceeds the future cash flows management expects to derive from the cattles, the impairment loss of RM7,033,000 had been recognised as the Group’s impairment of non-financial assets and had been included as impairment loss within the Others Sector in the Group’s segment reporting (Note 18). c) FGV Agri Services Sdn. Bhd. (“FGVAS”) The proposed closure of a mini mill in FGVAS had been identified as indicator for impairment for the assets. Based on the impairment assessment, the recoverable amount is Nil based on the expected planned closure. The impairment loss of RM4,668,000 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 Group leases out certain of its buildings and structures, mainly relating to tanks, pipelines and installations and warehouses, to tenants under operating leases. The Group is not exposed to any material impact of lease payments subject to variable lease considerations. Operating lease receipts represent rentals receivable by the Group for natural oil tanks and oil pipeline system rented out. The future aggregate minimum lease receivables under non-cancellable operating lease are as follows: Group 2023 RM’000 2022 RM’000 Within 1 year 2,368 2,265 Between 1 and 2 years 2,368 2,265 Between 2 and 3 years 2,368 2,265 Between 3 and 4 years 2,368 2,265 Between 4 and 5 years 2,368 2,265 11,840 11,325 Rental income recognised in profit or loss during the financial year amounted to RM1,892,000 (2022: RM1,905,000).
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