Notes tothe financial statements For the financial year ended 31 December 2023 12. Earnings per share Basic earnings per share are calculated by dividing profit for the year attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share are calculated by dividing profit for the year attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares. The following table reflects the profit and share data used in the computation of basic and diluted earnings per share for the years ended 31 December: Group 2023 Rp million 2022 Rp million Profit attributable to owners of the Company 614,244 769,977 No. of shares No. of shares Weighted average number of ordinary shares for basic earnings per share computation 1,395,904,530 1,395,904,530 Basic earnings per share (in Rupiah) 440 552 There were no dilutive potential ordinary shares as at 31 December 2023 and 2022. 13. Biological assets Biological assets primarily comprise of timber plantations (which are presented as part of non-current assets), and the unharvested agricultural produce of bearer plants (which are presented as part of current assets). The carrying amount of the Group’s biological assets as at 31 December 2023 is Rp1,086.9 billion (2022: Rp1,092.4 billion). Fair values of biological assets Biological assets under non-current assets - timber plantations For timber plantations, the Group appointed an independent valuer to determine the fair value of timber annually and any resultant gain or loss arising from the changes in fair values is recognised in the profit or loss. The independent valuer adopted the income approach for the fair valuation of timber using a discounted cash flow model. The cash flow models estimate the relevant future cash flows which are expected to be generated in the future and discounted to the present value by using a discount rate. The key assumptions applied are as follows: (i) Timber tree is available for harvest only once approximately 8 years after initial planting; (ii) Discount rate used represents the asset specific rate for the Group’s timber plantations operations which are applied in the discounted future cash flows calculation; (iii) The projected selling price of logs over the projection period are based on average selling price of the agricultural produce which is extrapolated based on changes of plywood log market price. 101 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Annual Report 2023
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