ENRA Group Berhad Annual Report 2021

FINANCIAL STATEMENTS & OTHERS ENRA Group Berhad | Annual Report 2021 132 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2021 9. INTANGIBLE ASSETS (cont’d) Intangible assets are initially measured at cost. After initial recognition, intangible assets, excluding goodwill and trademark and trade names 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 2021 2020 RM’000 RM’000 At beginning of the financial year 12,940 12,934 Acquisition of subsidiaries – 6 Impairment during the year (8,536) – At end of the financial year (Note 9) 4,404 12,940 (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. (b) Impairment of goodwill Goodwill has been allocated to the identified CGU according to relevant operating segments based on the geographical location of customers as follows: Group 2021 2020 RM’000 RM’000 Malaysia 400 8,912 United Kingdom – 24 Australia 4,004 4,004 4,404 12,940