7 173 172 Notes to the Financial Statements Notes to the Financial Statements 11. BIOLOGICAL ASSETS (CONTINUED) Fair value information (continued) Type Description of valuation technique Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurements Layers and Breeders Discounted cash flow Fair values of the layers and breeders are determined using discounted cash flow model. The expected net cash flows are discounted using risk-adjusted discount rate. • Estimated selling price of the agriculture produce • Estimated feed cost The estimated fair value would increase/(decrease) if: • The estimated selling price of the agriculture produce were higher/ (lower) • The estimated feed cost were lower/(higher) Broilers Net cash flow Fair values of the broilers are determined based on the expected net cash flows from sale proceeds of the broilers less the estimated feed and farm overhead cost to nurture the broiler to the point of sale. • Estimated selling price of the broilers at the point of sale The estimated fair value would increase/(decrease) if: • The estimated selling price of the broiler at the point of sale were higher/(lower) Hatching eggs Net cash flow Fair values of the hatching eggs are determined based on the expected net cash flows generated by the dayold chicks produced and other estimated hatching overhead cost incurred to the point of sale. • Estimated selling price of the day-old chicks at the point of sale The estimated fair value would increase/(decrease) if: • The estimated selling price of the day-old chicks at the point of sale were higher/(lower) FFB Net cash flow Fair values of the fresh fruit bunches are determined based on the expected net cash flows generated by the produce growing on the bearer plants (i.e: FFB) and other estimated production cost incurred. • Estimated selling price of the FFB The estimated fair value would increase/(decrease) if: • The estimated selling price of the fresh fruit bunches were higher/ (lower) 11. BIOLOGICAL ASSETS (CONTINUED) Fair value information (continued) The key assumptions used for the fair value calculation at financial year across geographical locations are as follows: 2023 2022 Layers Estimated average eggs’ selling prices per piece (sen) 41 – 49 39 – 44 Estimated feed costs (RM per MT) 1,969 – 2,292 1,725 – 2,065 Breeders Estimated selling prices of the day-old chick (RM) 1.50 – 2.36 1.70 – 2.10 Estimated feed costs (RM per MT) 2,169 – 2,307 1,929 – 2,121 Broilers Estimated selling prices of the broiler at the point of sale (RM per KG) 5.52 – 7.27 5.94 – 6.66 Hatching eggs Estimated selling prices of the day-old chick at point of sales (RM) 1.50 – 2.16 1.35 – 2.15 Fresh fruit bunches Estimated selling price of the fresh fruit bunches (RM per MT) 597 - 748 888 – 1,250 Sensitivity analysis Sensitivity analysis of the possible changes in key assumptions (assumes all other variables remained constant) on fair value of biological assets at year end are disclosed in the table below: Effect on fair value of respective biological assets 2023 2022 Layers Estimated average selling price of eggs - Increased by 5% +15.18% +14.25% - Decreased by 5% -15.18% -14.25% Estimated feed costs (per MT) - Increased by 5% -9.35% -8.57% - Decreased by 5% +9.35% +8.57% Breeders Estimated selling price of the day-old chick - Increased by 5% +9.60% +9.07% - Decreased by 5% -9.60% -9.07% Estimated feed costs (per MT) - Increased by 5% -3.88% -3.40% - Decreased by 5% +3.88% +3.40%
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