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NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2013

105

INDOFOOD AGRI RESOURCES LTD • ANNUAL REPORT 2013

14. PROPERTY, PLANT AND EQUIPMENT (CONT'D)

Assets pledged as security

Property, plant and equipment with a net carrying value of Rp140.0 billion (2012: Rp143.4 billion) are pledged to secure the

borrowings of a subsidiary company as at 31 December 2013 (Note 26).

Land Use Rights

The Group has land use rights with terms ranging from 8 to 40 years which will expire between 2014 to 2047. The cost incurred

in obtaining the land use rights are depreciated in a manner that reflects the benefits to be derived from them. The management

also believes that these land use rights can be renewed/ extended upon expiration.

The net carrying amount of land use rights to be amortised at the end of the reporting period is as follows:

Group

31.12.2013 31.12.2012

Rp million

Amount to be amortised

- Not later than one year

64,786

63,062

- Later than one year but not later than five years

258,495

251,870

- Later than five years

1,309,789

1,320,833

1,633,070

1,635,765

15. GOODWILL

Group

31.12.2013 31.12.2012

Rp million

At 1 January and 31 December

3,247,532

3,155,786

Goodwill arising from business combination was allocated to the following cash-generating units for impairment testing:

Integrated plantation estates of Lonsum

2,909,757

Plantation estates of PT GS

8,055

Plantation estates of PT MPI

2,395

Plantation estates of PT SBN

234

Plantation estates of PT KGP

29,140

Integrated plantation estates of PT CNIS

7,712

Plantation estates of PT LPI

37,230

Plantation estates and research facility of PT SAIN

113,936

Plantation estates of PT RAP

3,388

Plantation estates of PT JS

1,533

Integrated plantation estates of PT MISP

34,087

Plantation estates of PT IBP

8,319

Plantation estates of PT SAL

86,996

–

Plantation estates of PT WKL

4,750

–

Total

3,247,532

3,155,786

Included in the current year goodwill addition of Rp91.8 billion was the goodwill amounting to Rp4.75 billion recognised by SAL

upon its acquisition of WKL in previous years.