Annual Report 2012 - IOI Group

14. PROPERTY, PLANT AND EQUIPMENT (Continued)GroupCompany2012RM’0002011RM’0002012RM’0002011RM’000Carrying amountFreehold land 506,710 541,945 212,694 212,694Leasehold land 815,905 821,083 7,504 7,609Plantation development expenditure 1,803,443 1,764,889 187,451 185,681Golf course development expenditure 84,339 15,619 – –Buildings and improvements 1,005,870 940,850 19,608 19,403Plant and machinery 1,227,713 1,105,370 6,905 6,868Motor vehicles 25,341 22,767 3,070 1,206Furniture, fittings and equipment 58,856 64,020 2,812 2,470Construction in progress 185,512 400,933 986 6015,713,689 5,677,476 441,030 436,532Included in the Group’s plantation development expenditure and construction in progress is an amount of interest expensecapitalised during the financial year amounting to RM6,389,000 (2011 – RM910,000).Interest is capitalised at the rate 4.50% to 7.30% (2011 – 4.50% to 7.30%) per annum.Included in property, plant and equipment are the carrying amounts of assets acquired under finance lease as follows:GroupCompany2012RM’0002011RM’0002012RM’0002011RM’000Plant and machinery 597 540 – –During the financial year, the Group and the Company made the following cash payments to purchase property, plant andequipment:GroupCompany2012RM’0002011RM’0002012RM’0002011RM’000Additions to property, plant and equipment 403,728 438,845 8,647 4,822Capital gain on exchange of land – (41,600) – –Interest capitalised (6,389) (910) – –Financed by finance lease arrangement (122) (440) – –Cash payments on purchase of property, plant andequipment397,217 395,895 8,647 4,822Annual Report 2012IOI CORPORATION BERHAD 167