FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 179 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 45 LAND LEASE AGREEMENT (“LLA”) LIABILITY (CONTINUED) The sensitivity of the LLA liability to changes in key assumptions is as follows: Key assumptions Change in assumption Impact on LLA liability 2023 (i) Discount rate Increase by 0.5% Decrease by RM182 million Decrease by 0.5% Increase by RM203 million (ii) Short term CPO price Increase by RM400 per metric tonne Increase by RM33 million Decrease by RM100 per metric tonne Decrease by RM8 million Medium term CPO price Increase by RM550 per metric tonne Increase by RM91 million Decrease by RM100 per metric tonne Decrease by RM18 million (iii) Short term PK price Increase by RM200 per metric tonne Increase by RM5 million Decrease by RM50 per metric tonne Decrease by RM1 million Medium term PK price Increase by RM275 per metric tonne Increase by RM12 million Decrease by RM50 per metric tonne Decrease by RM2 million (iv) Improvement/reduction in short to medium term FFB yield Increase/decrease by 20% Increase/decrease by RM156 million (v) Short to medium term mature estate cost Increase/decrease by 20% Decrease/increase by RM123 million (vi) Short to medium term immature estate cost Increase/decrease by 20% Decrease/increase by RM34 million 2022 (i) Discount rate Increase by 0.5% Decrease by RM185 million Decrease by 0.5% Increase by RM207 million (ii) Short term CPO price Increase by RM500 per metric tonne Increase by RM47 million Decrease by RM500 per metric tonne Decrease by RM47 million Medium term CPO price Increase by RM250 per metric tonne Increase by RM45 million Decrease by RM250 per metric tonne Decrease by RM50 million (iii) Short term PK price Increase/decrease by RM200 per metric tonne Increase/decrease by RM5 million Medium term PK price Increase/decrease by RM100 per metric tonne Increase/decrease by RM5 million (iv) Improvement/reduction in short to medium term FFB yield Increase/decrease by 10% Increase/decrease by RM89.0 million (v) Short to medium term mature estate cost Increase/decrease by 10% Decrease/increase by RM62 million (vi) Short to medium term immature estate cost Increase/decrease by 10% Decrease/increase by RM15 million
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