ENRA Group Berhad Annual Report 2019

98 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 8. INVESTMENT IN AN ASSOCIATE (cont’d) Details of the associate is as follow: Name of company Effective interest in equity Principal activities 2019 % 2018 % Perunding ENRA Sdn. Bhd. 30 30 Project management and engineering, procurement and construction contracts On 13 June 2018, ENRA Engineering Construction Sdn. Bhd. (“EEC”) increased its investment in Perunding ENRA Sdn. Bhd. from RM15,000 to RM50,000 by way of capitalizing of RM50,000 from the advances owing by Perunding ENRA Sdn. Bhd. to EEC. On 26 June 2018, EEC transferred 35,000 shares to a Director of a subsidiary at a cash consideration of RM35,000. Associates are entities, including unincorporated entities, in which the Group has significant influence, but not control or joint control, over the financial and operating policy decisions. Investments in associates are accounted for in the consolidated financial statements using the equity method less any impairment losses. The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of the equity accounted associates, after adjustments, if any, to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases. When the Group’s share of losses exceeds its interests in an equity accounted associate, the carrying amount of that interests including any long-term investments is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee. The Group has recognised its share of losses up to the cost of investment and stopped recognising its remaining share of losses since there is no further obligation in respect of those losses using the equity method of accounting. 9. INTANGIBLE ASSETS Intangible assets are initially measured at cost. After initial recognition, intangible assets, excluding goodwill are carried at cost less accumulated amortisation and any accumulated impairment losses, if any. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are assessed for any indication that the asset may be impaired and are amortised on a straight line basis over their estimated economic useful lives, not exceeding ten (10) years. Intangible assets that have an indefinite useful life are tested annually for impairment or more frequently if events or changes in circumstances indicate that the intangible asset might be impaired. Group Balance as at 1.4.2018 RM’000 Acquisition of subsidiaries (Note 7(c)(vi)) RM’000 Amortisation charge for the financial year RM’000 Balance as at 31.3.2019 RM’000 Carrying amount Goodwill (Note 10) 8,505 4,429 - 12,934 Customer relationships - 2,883 (193) 2,690 Trademark and trade names - 1,582 - 1,582 8,505 8,894 (193) 17,206