CASE STUDY 3-PLANTATIONS United Plantations Berhad owns large hectares of rubber plantations, oil palm plantations and timber plantations which are harvested and reafforested. The Finance Manager was informed that he has to consider the use of MFRS 116 for the plantations and he is unable to understand how this is applicable as accounting for agriculture is within the purview of MFRS 140 Agriculture. Problem to Consider Assist the Finance Manager to determine how such plantations may be treated and whether MFRS 116 would in any way, be applicable. Case Study 3-Suggested Solution Rubber plantation - whole tree used for latex and at end of life of tree the tree is sold for rubberwood But if no market for rubberwood Oil Palm Plantations - after 25 years the trees have no commercial use Timber Plantations - whole tree used for commercial purposes MFRS Treatment Biological Asset - MFRS 140 PPE - MFRS 116 PPE - MFRS 116 Biological Asset - 140

CASE STUDY 3 - PLANTATIONS United Plantations Berhad owns large hectares of rubber plantations, oil palm plantations and timber plantations which are harvested and reafforested. The Finance Manager was informed that he has to consider the use of MFRS 116 for the plantations and he is unable to understand how this is applicable as accounting for agriculture is within the purview of MFRS 140 Agriculture. Problem to Consider Assist the Finance Manager to determine how such plantations may be treated and whether MFRS 116 would in any way, be applicable