directors - The Lion Group

15. FOREST CONCESSIONS
64
The Group
2005 2004
RM’000 RM’000
At cost:
Forest concessions 388,200 388,200
Cumulative amortisation:
At beginning of year (76,472) (65,676)
Amortisation for the year (10,796) (10,796)
At end of year (87,268) (76,472)
Net 300,932 311,728
The forest concessions consist of two forest areas with a total area of 276,623 hectares. The values attributable to
the concessions of 158,623 hectares and 118,000 hectares are RM131,200,000 and RM257,000,000 respectively.
The 158,623 hectares and 118,000 hectares of concession are amortised evenly over their estimated useful lives
of 16 years and 99 years, respectively.
16. PLANTATION DEVELOPMENT EXPENDITURE
The Group
2005 2004
RM’000 RM’000
At cost:
At beginning of year 145,221 137,377
Additions for the year 6,137 7,844
At end of year 151,358 145,221
Cumulative amortisation:
At beginning of year (4,397) (4,316)
Amortisation for the year (102) (81)
At end of year (4,499) (4,397)
Net 146,859 140,824
Charges to plantation development expenditure during the financial year include depreciation of property, plant
and equipment amounting to RM325,000 (2004: RM433,000).
Current amortisation of RM102,000 (2004: RM81,000) has been charged to inventories.