Biological assets are AGRICULTURE PRODUCE that are unharvested (because yet to achieve maturity) . Once they are harvested, they become inventory.
Example : 1 oil palm plantation - unharvested/immature FFB on the palm trees 2.Poultry - all livestocks at various ages before maturity 3.Forestry - all the timber trees in the plantation forest yet to be harvested.
land and the palm tress are not Agriculture produce. Land and palm tress are fixed asset in the balance sheet.
shiby, I have already explain in above what is biological assets. For oil palm plantation, they are the unharvested/unripen FFB still on the palm trees.
FFB takes about 5.5 months from flower formation to become mature FFB. Oil synthesis in the fruitlets begin a couple of months before they are ripen for harvesting. As such, some plantation has the practice to book the CPO in those unripen/unharvested FFB between 1-3 months before the FFB ripen for harvesting.
In the case of THpLANT, it used to booked in advance for the CPO in the fruits that are 3 months before ripening/harvesting and therefore recorded higher biological assets (and hence profit in P&L) than those company who only book for 1 month before harvesting.
In Q4 2021, THplant change the accounting treatment to book for 1 month before ripening/harvesting which is in line with other company As a result, the company have to reverse the higher biological assets booked in previous qtrs and resulting considerable accounting loss in fair value change in biological assets .
Posted by shiby > Feb 28, 2022 12:13 PM | Report Abuse
hmm i am still holding.what is this biological asset mark down. can anyone explain?.
Freefloat share is very small. Price should have big room to go up. Based on avg realised price of $5,500 for FY2022, I estimated EPS to be 20 sen. Based on forward PE 15x, share price should be $3.00
Johnzhang .thank you for your explanation. informtive and concise.appreciate it. Posted by Johnzhang > 21 hours ago | Report Abuse
shiby, I have already explain in above what is biological assets. For oil palm plantation, they are the unharvested/unripen FFB still on the palm trees.
Malaysia is Asia?s ?new gold ?amid market volatility -Modular March 07, 2022 10:03 am +08 (March 7): Modular Asset Management will increase its already long exposure to ringgit-denominated assets as they are the new gold amid increased market volatility, said strategist Wai Ho Leong.
Resource exporters like Malaysia are the new gold. It is in a unique sweet spot, being Asia?s only net energy and edible oil exporter, said Singapore-based Leong.
It will start to stand out in stark contrast to Thailand, India and the Philippines, which are among the largest importers of oil, metals and food, Leong added.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
maestro85
248 posts
Posted by maestro85 > 2022-02-25 21:38 | Report Abuse
no losing. It will pick up although a bit slow