SCC Holdings Berhad Annual Report 2018

SCC Holdings Berhad | Annual Report 2018 .63 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2018 (CONT’D) 6. Goodwill on Consolidation (cont’d) The goodwill was derived from the acquisition of a wholly-owned subsidiary company, SCC Food Manufacturing Sdn. Bhd. in the previous financial years. Management determined the recoverable amount of the goodwill on consolidation of each subsidiary company based on the individual assets’ value in use and the probability of the realisation of the assets. The present value of the future cash flows to be generated by the asset is the asset’s value in use, and it is assumed to be the same as the net worth of the asset as at reporting date. An impairment loss is recognised immediately in the profit or loss if the recoverable amount is less than the carrying amount. 7. Investment Securities Group 2018 2017 RM’000 RM’000 Non-current Fair value through other comprehensive income Quoted securities in Malaysia - Equity instruments, at fair value 66 68 The movements are as below: Group 2018 2017 RM’000 RM’000 At 1 January 68 54 Fair value adjustment (2) 14 At 31 December 66 68 At 1 January 2018, the Group designated the investments as equity securities at fair value through other comprehensive income because these equity securities represent investments that the Group intends to hold for long-term strategic purposes. In previous financial year, these investments were classified as available-for-sale. 8. Inventories Group 2018 2017 RM’000 RM’000 At cost, finished goods: Food service equipment 4,918 4,433 Animal health products 2,735 2,316 Food service supplies 289 92 E-commerce stocks 6 - 7,948 6,841