Plantation records held across different locations
WAN NADZIR & CO.CHARTERED ACCOUNTANTS · AF1234Financial Reporting & Accounting Standards
Establishing the Cost of Bearer Plants Across Multiple Estates
A plantation entity needed a consistent basis for recognising bearer plants of different ages and crop types located across multiple estates.
Assignment snapshot
Oil palm and rubber of varying ages
Bearer plants and agricultural produce accounted for separately
The assignment
Turning plantation records into a supportable accounting basis.
The entity had plantation assets spread across multiple locations, with planting cohorts of different ages.
Following a change in accounting requirements, it needed to establish the cost and carrying amount of its bearer plants using the plantation records and cost information available. The treatment also had to distinguish the bearer plants from the agricultural produce growing on them.
The challenge
Different crops.
Different ages.
One consistent basis.
- 01
Work with plantation records covering different estates, crop types and planting years.
- 02
Distinguish immature bearer plants from those that had reached maturity.
- 03
Establish a consistent basis for recognising relevant development costs.
- 04
Account for movements as planting cohorts reached maturity.
- 05
Determine depreciation and carrying amounts for mature bearer plants.
- 06
Account separately for agricultural produce growing on bearer plants.
Our approach
A structured model built around the available plantation records.
We developed a structured calculation model using the plantation records and cost information provided by the client.
The model established a consistent basis for determining the cost and carrying amount of bearer plants across different estates, crop types and planting years, while keeping the accounting for agricultural produce separate.
Plantation records
Organise the available information by estate, crop type, planted area and planting year.
→Accounting treatment
Distinguish the bearer plants from the agricultural produce growing on them.
→Calculation framework
Apply a consistent basis for determining cost, maturity status, movements and depreciation.
→Reporting outputs
Prepare the carrying amounts and supporting movements required for financial reporting.
What we developed
A connected basis for recognition, measurement and reporting.
- Structured bearer-plant register
- Classification of immature and mature bearer plants
- Calculation framework for relevant development costs
- Movements from immature to mature bearer plants
- Depreciation and carrying-amount calculations
- Supporting schedules for financial reporting
- Separate calculation for agricultural produce
The outcome
A consistent and traceable basis for plantation reporting.
The entity obtained a structured basis for recognising bearer plants using the records available across its estates.
The model also provided a repeatable process for maintaining maturity classifications, movements, depreciation and carrying amounts in subsequent reporting periods.
Start a conversation