Sample Disclosure – Biological Assets and Replanting Expenditure (19 February 2009)
Biological Assets and Replanting Expenditure
(i) Plantation development expenditure
New planting expenditure incurred on land clearing and upkeep of trees to maturity is capitalised as plantation development expenditure under biological assets and is not amortised.
(ii) Replanting expenditure
Replanting expenditure is charged to the income statement in the year in which the expenditure is incurred.