GHL System Berhad Annual Report 2018

a n n u a l r e p o r t 2 0 1 8 99 NOT ES TO THE F I NANC I A L STAT EMENTS 3 1 D e c e m b e r 2 0 1 8 C O N T ’ D 14. GOODWILL (cont’d) (c) Key assumptions used in value-in-use calculations (cont’d) (iii) Terminal value Terminal growth rate are in the range of 3% to 5% (2017: 3.0%). 2018 2017 % % Terminal growth rates e-pay group of companies 3 3 Paysys group of companies 5 - Based on the annual impairment testing undertaken by the Group, no impairment loss is required for the carrying amount of the remaining goodwill assessed as at 31 December 2018 as its recoverable amount is in excess of its carrying amount. Sensitivity to changes in assumptions Management is not aware of any reasonably possible changes in the assumptions above that could cause any impairment loss on goodwill. 15. INVESTMENTS IN SUBSIDIARIES Company 2018 2017 RM RM Unquoted shares, at cost 40,416,124 35,316,124 Equity contributions in subsidiaries in respect of ESS 2,462,813 1,818,965 Advances to a subsidiary 61,042,181 - 103,921,118 37,135,089 Less: Accumulated impairment losses (15,738,248) (14,663,571) 88,182,870 22,471,518 (a) Investments in subsidiaries, which are eliminated on consolidation, are stated in the separate financial statements of the Company at cost less impairment losses, if any. (b) All components of non-controlling interests shall be measured at their acquisition-date fair values, unless another measurement basis is required by MFRSs. The choice of measurement basis is made on a combination-by-combination basis. Subsequent to initial recognition, the carrying amount of non- controlling interests is the amount of those interests at initial recognition plus the non-controlling interests’ share of subsequent changes in equity. The Group does not have any subsidiary that has non-controlling interests, which is individually material to the Group for both financial years ended 31 December 2017 and 31 December 2018. (c) Advances to a subsidiary are unsecured, interest-free and settlement is neither planned nor likely to occur in the foreseeable future for the purposes of providing the subsidiary with a long term source of additional capital.