16 PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS (i) In the previous financial year, after analysing the market outlook, competitive intensity and the attractiveness of the industry, the Group had strategically decided to exit its non-core business, i.e. the rubber, oil palm and mango plantation. The Group therefore presents and discloses in its financial statements the financial effects of the non-core business in accordance to MFRS 5 ‘Non-Current Assets Held for Sale and Discontinued Operations’. (ii) Analysis of the profit and loss of discontinued operations is as follows: 2021 2020 RM’000 RM’000 Revenue - - Cost of sales - - Gross profit - - Other operating income 89,493 619 Administrative expenses (755) (555) Other operating expenses - (75,155) Profit/(Loss) before taxation 88,738 (75,091) Taxation - deferred tax (Note 32) - - Profit/(Loss) from discontinued operation 88,738 (75,091) (iii) Analysis of the cash flows of discontinued operations is as follows: 2021 2020 RM’000 RM’000 Operating cash flows (1,893) (14,069) Investing cash flows 1,815 619 Total cash outflow (78) (13,450) (iv) Profit/(Loss) before taxation from discontinued operations is stated after charging/(crediting): 2021 2020 RM’000 RM’000 Reversal of impairment of asset held for sale - (1,762) Impairment of property, plant and equipment - 43,705 (Reversal of impairment)/Impairment of receivables (16) 20 Depreciation of property, plant and equipment - 2,011 Depreciation of right-of-use assets - 2,674 Property, plant and equipment written-off - 27,244 Staff costs 183 307 Gain on disposal of a subsidiary (85,527) - Inventories written off - 177 Gain on disposal of property, plant and equipment (1,572) (566) During the financial year ended 31 December 2019, the recoverability of plantation assets which included leasehold land and bearer plants was determined based on the offer price received from a potential buyer. Following the assessment, an impairment of RM1,762,000 was made during financial year ended 31 December 2019 upon reclassification of the asset to Assets Held for Sale from Right-of-Use Assets and Property, Plant and Equipment. NOTESTOTHE FINANCIAL STATEMENTS FORTHE FINANCIALYEAR ENDED 31 DECEMBER 2021 SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 325
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