104.
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
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For the financial year ended 31 December 2015
14.
PROPERTY, PLANT AND EQUIPMENT (CONT’D)
Capitalisation of borrowing costs
During the year ended 31 December 2015, borrowing costs capitalised by certain subsidiary companies to their building
andmachineries under construction amounted to Rp21.1 billion (2014: Rp21.0 billion) based on the specific identification
of the related borrowings and using capitalisation rates ranging from 9.38% to 11.67% (2014: 6.97% to 12.28%) in 2015.
Assets under finance lease
Land Use Rights
The Group has land use rights with terms ranging from 8 to 40 years which will expire between 2016 to 2049. 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
2015
2014
Rp million
Rp million
Amount to be amortised
- Not later than one year
71,003
71,030
- Later than one year but not later than five years
274,840
283,198
- Later than five years
1,563,874
1,557,269
1,909,717
1,911,497
