6. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (continued) (b) Impairment on goodwill The Group assesses the adequacy of impairment on goodwill on an annual basis. The recoverable amount of the cash-generating units (“CGUs”) was determined based on value-in-use calculations which require significant management judgement and estimates about the future results and the key assumptions applied to cash flow projections of the CGUs. (c) Valuation of biological assets In measuring the fair value of biological assets, significant management judgement and estimates were required in determining the market price of teak timbers and the discount rate used in the discounted cash flow model. NOTES TO THE FINANCIAL STATEMENTS 113 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 31 December 2021 (cont’d)
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