ENRA Group Berhad Annual Report 2019

99 ENRA GROUP BERHAD ∞ Annual Report 2019 page Notes to the Financial Statement 31 March 2019 9. INTANGIBLE ASSETS (cont’d) At 31.3.2019 Cost RM’000 Accumulated amortisation and impairment RM’000 Carrying amount RM’000 Goodwill 12,934 - 12,934 Customer relationships 2,883 (193) 2,690 Trademark and trade names 1,582 - 1,582 17,399 (193) 17,206 10. GOODWILL ON CONSOLIDATION Group 2019 RM’000 2018 RM’000 At 1 April 8,505 8,505 Acquisition of subsidiaries 4,429 - At 31 March (Note 9) 12,934 8,505 (a) Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but instead, it is reviewed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying valuemay be impaired.This requires an estimation of the value- in-use of the subsidiaries to which goodwill is allocated. Estimating a value-in-use amount requires management to make an estimate of the expected future cash flows from the subsidiaries and also to choose a suitable discount rate in order to calculate the present value of those cash flows. Goodwill arising from the acquisition of ASLL, ICE and EIOL during the year have been allocated to property development division, energy services division and engineering, construction and fabrication division for annual impairment testing and at other times when such indicators exist. This requires an estimation of the recoverable amount to which goodwill is allocated. The annual impairment review conducted at the end of the financial year is performed by comparing the cash generating unit’s carrying amount and its recoverable amount determined based on value in use calculation using cash flow projections covering five years period with a terminal value based on year five results. There is no impairment loss to be recognised in the current financial year. (b) Goodwill has been allocated to the identified cash generating unit (“CGU”) according to relevant operating segments based on the geographical location of customers as follows: Group 2019 RM’000 2018 RM’000 Malaysia 8,906 8,505 UK 24 - Australia 4,004 - 12,934 8,505