9. INTANGIBLE ASSETS (continued) Customers Computer Goodwill relationship software License Total Group RM’000 RM’000 RM’000 RM’000 RM’000 Accumulated impairment loss At 1 January 2020 34,479 - - - 34,479 Impairment loss for the financial year 16,310 - - - 16,310 Translation adjustments 1,742 - - - 1,742 At 31 December 2020/1 January 2021 52,531 - - - 52,531 Impairment loss for the financial year 12,110 3,619 - - 15,729 Translation adjustments 3,657 62 - - 3,719 At 31 December 2021 68,298 3,681 - - 71,979 Carrying amount At 31 December 2020 13,397 4,314 35 1,669 19,415 At 31 December 2021 1,233 - 7 - 1,240 The carrying amount of goodwill arising from the acquisition of the respective subsidiaries and allocated to the Group’s CGU based on the geographical location is as follows: Group 2021 2020 RM’000 RM’000 Malaysia 1,233 1,233 China - 11,550 Hong Kong - 614 1,233 13,397 (a) For the purpose of impairment testing, the recoverable amount of the CGU is determined based on a “valuein-use” calculation. The value-in-use of the CGU is determined by discounting the future cash flows to be generated from continuing use of the CGU. The value-in-use is derived based on management’s cash flow projections for three (3) to five (5) financial years from 2022. The key assumptions used in the value-in-use calculations are as follows: 2021 2020 % % Average annual revenue growth rates Malaysia 7.7 7.7 China 12.2 17.0 Hong Kong - 5.6 Pre-tax discount rates 11.9 - 17.6 12.5 - 17.7 NOTES TO THE FINANCIAL STATEMENTS 119 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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