MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS MISC BERHAD | Annual Report 2017 224 14. INTANGIBLE ASSETS Goodwill RM'000 Group Other intangible assets RM'000 Total RM'000 Cost At 1 January 2016 1,021,115 504,463 1,525,578 Addition - 47,453 47,453 Disposal of a subsidiary (149) - (149) Write-off - (339,359) (339,359) Currency translation differences 38,043 - 38,043 At 31 December 2016/1 January 2017 1,059,009 212,557 1,271,566 Currency translation differences (84,873) - (84,873) At 31 December 2017 974,136 212,557 1,186,693 Accumulated amortisation and impairment At 1 January 2016 162,501 437,442 599,943 Amortisation for the year (Note 5) - 17,675 17,675 Write-off - (284,728) (284,728) At 31 December 2016/1 January 2017 162,501 170,389 332,890 Amortisation for the year (Note 5) - 9,424 9,424 At 31 December 2017 162,501 179,813 342,314 Net carrying amount At 31 December 2016 896,508 42,168 938,676 At 31 December 2017 811,635 32,744 844,379 The other intangible assets relate to the fair value at the date of acquisition of time charter hire contracts arising from acquisition of subsidiaries, and are amortised over the remaining charter period. As a result of the early termination of certain time charter contracts, the other intangible assets amounting to RM54,631,000 has been written off in the previous financial year. The addition in the other intangible assets amounting to RM47,453,000 in the previous financial year relates to the fair value, at the date of acquisition, of long term customer contracts from acquisition of MISC Maritime Services Sdn. Bhd. (formerly known as PETRONAS Maritime Services Sdn. Bhd.).