Atul AR 2018-19 Cover to Cover high res

s) Borrowing costs:

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are

capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale.

Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

TŠǄĚƙƥŞĚŠƥ ĿŠČūŞĚ ĚîƑŠĚē ūŠ ƥĺĚ ƥĚŞƎūƑîƑǋ ĿŠǄĚƙƥŞĚŠƥ ūlj ƙƎĚČĿǛČ ċūƑƑūǅĿŠijƙ ƎĚŠēĿŠij ƥĺĚĿƑ ĚǊƎĚŠēĿƥƭƑĚ ūŠ ƐƭîŕĿljǋĿŠij

assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period

in which they are incurred.

t) Biological assets:

The biological assets of the Company comprise oil palms and tissue culture.

¹ĺĚ ūŞƎîŠǋ ČŕîƙƙĿǛĚƙ ƥĺĚ ƥĿƙƙƭĚ ČƭŕƥƭƑĚƙ îƙ qîƥƭƑĚ îŠē TŞŞîƥƭƑĚ ƎŕîŠƥƙȦ qîƥƭƑĚ ċĿūŕūijĿČîŕ îƙƙĚƥƙ îƑĚ ƥĺūƙĚ ǅĺĿČĺ îƑĚ

îǄîĿŕîċŕĚ ljūƑ ƙîŕĚ ĿŠ ŠĚǊƥ ǧǨ ŞūŠƥĺƙ ūƑ ƥĺîƥ ĺîǄĚ îƥƥîĿŠĚē ĺîƑǄĚƙƥîċŕĚ ƙƎĚČĿǛČîƥĿūŠƙ ȳljūƑ ČūŠƙƭŞîċŕĚ ċĿūŕūijĿČîŕ îƙƙĚƥƙȴ

or are able to sustain regular harvests (for bearer biological assets). The plants which are not mature are considered

immature plants.

The oil palm trees are Bearer plant and are therefore presented and accounted for as property, plant and equipment.

However, the oil palm Fresh Fruit Bunches (FFB) growing on the trees are accounted for as biological assets until the point

of harvest. Harvested oil palm FFB are transferred to inventory at fair value less costs to sell when harvested.

ĺîŠijĚƙ ĿŠ ljîĿƑ ǄîŕƭĚ ūlj ūĿŕ ƎîŕŞ GG ūŠ ƥƑĚĚƙ îƑĚ ƑĚČūijŠĿƙĚē ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ

Mature and immature tissue culture plants, which are ready for sale in less than 12 months from the reporting date are

ČŕîƙƙĿǛĚē îƙ ČƭƑƑĚŠƥ îƙƙĚƥƙ ƭŠēĚƑ ƙĚƎîƑîƥĚ ĺĚîē ūlj ċĿūŕūijĿČîŕ îƙƙĚƥƙ ūƥĺĚƑ ƥĺîŠ ċĚîƑĚƑ ƎŕîŠƥƙ îŠē ūƥĺĚƑƙ ƭŠēĚƑ ŠūŠȹ

current assets.

Biological assets are measured at fair value less cost to sell. Costs to sell include the incremental selling costs, including

auction charges, commission paid to brokers and dealers and estimated costs of transport to the market but excludes

ǛŠîŠČĚ Čūƙƥƙ îŠē ĿŠČūŞĚ ƥîǊȦ

Tissue culture raised matured plants are measured on initial recognition and at the end of each reporting period at its fair

ǄîŕƭĚ ŕĚƙƙ Čūƙƥƙ ƥū ƙĚŕŕȦ ¹ĺĚ ijîĿŠ ūƑ ŕūƙƙ îƑĿƙĿŠij ūŠ ƙƭČĺ ċĿūŕūijĿČîŕ îƙƙĚƥƙ îƑĚ ĿŠČŕƭēĚē ĿŠ ƥĺĚ ¬ƥîƥĚŞĚŠƥ ūlj ¡ƑūǛƥ îŠē gūƙƙȦ

Immature tissue culture raised plants are measured at cost less accumulated impairment loss, if the quoted market price

are not available for the immature plants at different stages and the fair value measurements are clearly unreliable.

u) Provisions and contingent liabilities:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it

Ŀƙ ƎƑūċîċŕĚ ƥĺîƥ îŠ ūƭƥǜūǅ ūlj ƑĚƙūƭƑČĚƙ ǅĿŕŕ ċĚ ƑĚƐƭĿƑĚē ƥū ƙĚƥƥŕĚ ƥĺĚ ūċŕĿijîƥĿūŠ îŠē ƥĺĚ îŞūƭŠƥ ČîŠ ċĚ ƑĚŕĿîċŕǋ ĚƙƥĿŞîƥĚēȦ

¹ĺĚƙĚ îƑĚ ƑĚǄĿĚǅĚē îƥ ĚîČĺ ǋĚîƑ ĚŠē îŠē ƑĚǜĚČƥ ƥĺĚ ċĚƙƥ ČƭƑƑĚŠƥ ĚƙƥĿŞîƥĚȦ ¡ƑūǄĿƙĿūŠƙ îƑĚ Šūƥ ƑĚČūijŠĿƙĚē ljūƑ ljƭƥƭƑĚ

operating losses.

ØĺĚƑĚ ƥĺĚƑĚ îƑĚ î ŠƭŞċĚƑ ūlj ƙĿŞĿŕîƑ ūċŕĿijîƥĿūŠƙȡ ƥĺĚ ŕĿŒĚŕĿĺūūē ƥĺîƥ îŠ ūƭƥǜūǅ ǅĿŕŕ ċĚ ƑĚƐƭĿƑĚē ĿŠ ƙĚƥƥŕĚŞĚŠƥ Ŀƙ ēĚƥĚƑŞĿŠĚē

ċǋ ČūŠƙĿēĚƑĿŠij ƥĺĚ Čŕîƙƙ ūlj ūċŕĿijîƥĿūŠƙ îƙ î ǅĺūŕĚȦ

ƎƑūǄĿƙĿūŠ Ŀƙ ƑĚČūijŠĿƙĚē ĚǄĚŠ Ŀlj ƥĺĚ ŕĿŒĚŕĿĺūūē ūlj îŠ ūƭƥǜūǅ ǅĿƥĺ

respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of best estimate of the expenditure required to settle the present obligation

îƥ ƥĺĚ ĚŠē ūlj ƥĺĚ ƑĚƎūƑƥĿŠij ƎĚƑĿūēȦ ¹ĺĚ ēĿƙČūƭŠƥ ƑîƥĚ ƭƙĚē ƥū ēĚƥĚƑŞĿŠĚ ƥĺĚ ƎƑĚƙĚŠƥ ǄîŕƭĚ Ŀƙ î ƎƑĚȹƥîǊ ƑîƥĚ ƥĺîƥ ƑĚǜĚČƥƙ

ČƭƑƑĚŠƥ ŞîƑŒĚƥ îƙƙĚƙƙŞĚŠƥƙ ūlj ƥĺĚ ƥĿŞĚ ǄîŕƭĚ ūlj ŞūŠĚǋ îŠē ƥĺĚ ƑĿƙŒƙ ƙƎĚČĿǛČ ƥū ƥĺĚ ŕĿîċĿŕĿƥǋȦ ¹ĺĚ ĿŠČƑĚîƙĚ ĿŠ ƥĺĚ ƎƑūǄĿƙĿūŠ

due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which

ǅĿŕŕ ċĚ ČūŠǛƑŞĚē ūŠŕǋ ċǋ ƥĺĚ ūČČƭƑƑĚŠČĚ ūƑ ŠūŠȹūČČƭƑƑĚŠČĚ ūlj ūŠĚ ūƑ ŞūƑĚ ƭŠČĚƑƥîĿŠ ljƭƥƭƑĚ ĚǄĚŠƥƙ Šūƥ ǅĺūŕŕǋ ǅĿƥĺĿŠ ƥĺĚ

ČūŠƥƑūŕ ūlj ƥĺĚ ūŞƎîŠǋ ūƑ î ƎƑĚƙĚŠƥ ūċŕĿijîƥĿūŠ ƥĺîƥ îƑĿƙĚƙ ljƑūŞ Ǝîƙƥ ĚǄĚŠƥƙ ǅĺĚƑĚ Ŀƥ Ŀƙ ĚĿƥĺĚƑ Šūƥ ƎƑūċîċŕĚ ƥĺîƥ îŠ ūƭƥǜūǅ

of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.