p 223 MISC BERHAD - Annual Report 2014 14. Intangible assets (cont’d.) Impairment test for goodwill (a) Impairment loss recognised The Group performed a review on the recoverable amount of goodwill during the financial year. Based on this review, no impairment loss was recognised (2013: RM Nil). Generally, the recoverable amounts are based on the higher of market value of quoted share or value-in-use for the cash-generating unit (“CGU”) to which the goodwill is allocated. In determining value-in-use for the CGU, the cash flows were discounted at rates determined by management on a pre-tax basis. (b) Allocation of goodwill Goodwill has been allocated to the Group’s CGUs identified according to business segment as follows: Group 2014 2013 RM’000 RM’000 Energy related shipping 697,859 657,019 Other energy businesses 152,492 150,470 Non-shipping and others 870 870 851,221 808,359 (c) Key assumptions used in value-in-use calculations The recoverable amount of a CGU is determined using value-in-use method based on cash flow projections derived from financial projections approved by the management covering a five year period. The discount rate used is based on the pre-tax weighted average cost of capital determined by the management.
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