KUALA LUMPUR (April 28): Negri Sembilan Oil Palms Bhd (NSOP)’s value of its freehold and leasehold lands has increased to RM66.5 million, bringing the group's total land value to RM428.7 million.

“The board today approved the incorporation of an increase in value of its lands arising from the valuation of freehold and leasehold lands by the group in the consolidated financial statements for the financial year ended Dec 31, 2015.

“An amount of RM66.49 million, representing the increase in the fair value of the lands arising from the valuation performed by a professional valuer, is recognised in property, plant and equipment,” NSOP told Bursa Malaysia in a filing.

It said the valuation was done pursuant to the group’s accounting policy that states freehold and leasehold lands are measured at fair value less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

“Previously, the group's policy is to perform valuation at least once every five years, by an accredited independent valuer which is due in financial year ending Dec 31, 2016.

“However, since the last revaluation on Dec 31, 2011, the fair values of the lands have increased significantly, hence the fair value should have been reflected in the respective years, when such increase was noted,” it said.

NSOP added that retrospective adjustments have been made to the opening and closing balances in the financial statements, to attribute the increases in fair value to the respective financial years.

Furthermore, it said the recognition of the increase in value of freehold and leasehold lands has resulted in an increase of 69 sen in the net assets per stock unit attributable to owners of the parents.

NSOP closed two sen or 0.49% higher at RM4.12 today, for a market capitalisation of RM289.2 million.