ENRA Group Berhad Annual Report 2020

ENRA Group Berhad - Annual Report 2020 98 NOTES TO THE FINANCIAL STATEMENTS 31 March 2020 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 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. 10. GOODWILL ON CONSOLIDATION Group 2020 RM’000 2019 RM’000 At beginning of the financial year 12,934 8,505 Acquisition of subsidiaries 6 4,429 At end of the financial year (Note 9) 12,940 12,934 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 value may 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 Q Homes during the year have been allocated to property development 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.