SCC Holdings Berhad Annual Report 2019

notes to the financial statement 31 december 2019 (cont’d) 67 SCC Holdings Berhad | Annual Report 2019 7. Goodwill on Consolidation Group 2019 2018 RM’000 RM’000 At 1 January/31 December 8 8 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. 8. Investment Securities Group 2019 2018 RM’000 RM’000 Fair value through other comprehensive income Quoted securities in Malaysia - Equity instruments, at fair value 72 66 9. Inventories Group 2019 2018 RM’000 RM’000 At cost, finished goods: Food service equipment 8,800 4,918 Animal health products 1,521 2,735 Food service supplies 536 289 E-commerce stocks 1 6 10,858 7,948 Recognised in profit or loss: Inventories recognised as cost of sales 41,740 41,764