GHL System Berhad Annual Report 2020

118 G H L S y s t e m S B e r h a d 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 15. GOODWILL (cont’d) (c) Key assumptions used in value-in-use calculations (cont’d) (iii) Terminal value 2020 2019 % % Terminal growth rates e-pay group of companies 2 3 Paysys group of companies 5 - Speed Pay Plc. - 5 Impairment of goodwill amounted RM11,332,252 (2019: RM Nil) was recognised during the financial year due to adverse adjustments made to the forecast operating cash flows included in the value in use calculation of Speed Pay Plc as a result of COVID-19 pandemic. Speed Pay Plc was subsequently disposed off during the financial year as disclosed in Note 16(e)(i) to the financial statements. 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 2020 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 further impairment loss on goodwill. 16. INVESTMENTS IN SUBSIDIARIES Company 2020 2019 RM RM Unquoted shares, at cost 45,416,124 40,416,124 Accumulated impairment loss (15,662,619) (15,662,619) 29,753,505 24,753,505 Equity contributions in subsidiaries in respect of ESS 3,593,586 3,413,925 Accumulated impairment loss (97,162) (93,728) 3,496,424 3,320,197 Advances to subsidiaries 103,050,344 97,632,613 Accumulated impairment loss (1,343,782) (1,323,761) 101,706,562 96,308,852 134,956,491 124,382,554 (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.