108 / 168
Datasonic Group Berhad
(Company No. 809759-X)
106
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
10. DEVELOPMENT EXPENDITURES (CONT’D)
Included in the development expenditures is an amount of RM637,000 (2015 – RM683,000) in respect
of staff costs incurred during the financial year/period.
The development expenditures consist of direct and related costs for overhead and software solutions
incurred in the process of development, and attributable to the Group’s customised smart card
solutions (“CSCS”) reportable segment.
The Group has assessed the recoverable amounts of the development expenditure which are in the
process of development and determined that no impairment is required. Their recoverable amounts
are determined using the value in use approach, and this is derived from the present value of the
future cash flows from the customised software and hardware systems business computed based on
the projections of financial budgets covering a period of 5 years. The key assumptions used in the
determination of the recoverable amounts are as follows:-
(i) Budgeted profit margin Average profit margin achieved in the 5 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 customised software
and hardware systems business.
(iii) Discount rate (pre-tax)
Reflects specific risks relating to the relevant cash-generating unit.
11. TRADE RECEIVABLES
Group
2016
2015
RM’000
RM’000
Trade receivables
59,422
78,507
Allowance for impairment losses
(596)
(598)
58,826
77,909
Accrued income
72,240
29,746
131,066
107,655
The trade receivables are made up of:-
(a) Non-current:
Accrued income
7,152
6,582
(b) Current:
Trade receivables
58,826
77,909
Accrued income
65,088
23,164
123,914
101,073
131,066
107,655