107 / 168
Datasonic Group Berhad
(Company No. 809759-X)
105
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
9.
GOODWILL
Group
2016
2015
RM’000
RM’000
At 1.4.2015/1.1.2014
4,153
–
Acquisition of new subsidiaries (Note 39(b))
–
4,153
4,153
4,153
The amount of goodwill relates to the manufacturing of cards cash-generating unit. The goodwill
arose from the investment in subsidiaries and is reviewed for impairment annually.
The Group has assessed the recoverable amount of goodwill, and determined that no impairment is
required. The recoverable amount of the manufacturing of cards cash-generating unit is computed
using the value in use approach, and this is derived from the present value of the future cash flows from
the cash-generating unit based on the projections of financial budgets approved by management
covering a period of 3 years. The key assumptions used in the determination of the recoverable
amount are as follows:-
(i) Budgeted profit margin Average profit margin achieved in the 3 years immediately
before the budgeted period increased for expected efficiency
improvements and cost saving measures.
(ii) Growth rate
Based on the expected projection of the smart card business.
(iii) Discount rate (pre-tax)
Reflects specific risks relating to the relevant cash-generating unit.
The values assigned to the key assumptions represent management’s assessment of future projections
in the cash-generating unit and are based on both external sources and internal historical data.
10. DEVELOPMENT EXPENDITURES
Group
2016
2015
RM’000
RM’000
At cost:-
At 1.4.2015/1.1.2014
12,347
3,519
Additions
35,786
9,639
Cost of sales
(189)
(811)
47,944
12,347
Allowance for impairment losses
(1,222)
(1,222)
46,722
11,125