Wilmar International Limited – Annual report – 31 December 2016
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (extract)
2.2 Changes in accounting policies (extract)
Amendments to FRS 16 Property, Plant and Equipment and FRS 41 Agriculture: Bearer Plants
The amendments require changes to the accounting requirements for biological assets that meet the definition of bearer plants as detailed in Note 2.10. Under the amendments, biological assets that meet the definition of bearer plants are no longer within the scope of FRS 41. Instead, FRS 16 will apply. The Group’s bearer plants comprise mainly oil palm plantations as disclosed in Note 14.
Prior to the application of the Amendments, the Group recognised its bearer plants together with its produce as biological assets (non-current) using the fair value model where changes to its fair value less costs to sell at each reporting date were recognised in the income statement in the respective periods. Pursuant to the application of the amendments by the Group, immature bearer plants are initially recognised and measured under FRS 16 at accumulated cost, while matured bearer plants are accounted for using the cost model in FRS 16 i.e. at cost less accumulated depreciation and impairment. Produce that grows on bearer plants remain within the scope of FRS 41 and are measured at fair value less costs to sell. Government grants related to bearer plants are accounted for under FRS 20 Accounting for Government Grants and Disclosure of Government Assistance.
The Group has applied the amendments retrospectively on 1 January 2016 according to its transitional provisions. The effects of the application of the Amendments to FRS 16 Property, Plant and Equipment and FRS 41 Agriculture: Bearer Plants are listed in the table below. The impact of the Amendments to the Group’s assets and equity as at 31 December 2016 and to the Group’s total comprehensive income for the year ended 31 December 2016 are not practicably determinable.
- COMPARATIVE FIGURES
Financial information and disclosures were restated upon adoption of Amendments to FRS 16 Property, Plant and Equipment and FRS 41 Agriculture Bearer plants. Accordingly, the comparative figures have been restated as below: