DESTINI AR 2017

9. Intangible Assets (Cont’d) Product Development Brand Goodwill technology costs Total RM RM RM RM RM Group 2016 At cost At 1 January 2016 1,617,000 181,831,886 6,746,994 9,615,838 199,811,718 Additions - - - 238,560 238,560 Acquisition through business combination - 1,715,507 - - 1,715,507 Exchange differences - 701,540 - 191,719 893,259 At 31 December 2016 1,617,000 184,248,933 6,746,994 10,046,117 202,659,044 Accumulated amortisation At 1 January 2016 107,800 - - 2,948,029 3,055,829 Recognised in profit or loss 107,800 - - 495,062 602,862 Exchange differences - - - (25,179) (25,179) At 31 December 2016 215,600 - - 3,417,912 3,633,512 Accumulated impairment losses At 1 January 2016 - - - - - Recognised in profit or loss - 1,843,063 - - 1,843,063 At 31 December 2016 - 1,843,063 - - 1,843,063 Carrying amount At 31 December 2016 1,401,400 182,405,870 6,746,994 6,628,205 197,182,469 (a) Description of the intangible assets Brand Brand relates to the Techno Fibre Companies brand name of which the fair value of the acquired brand name was established using a form of income approach known as Relief-From-Royalty (“RFR”) method of which an independent valuation specialist had been engaged by the Group to value the brand name as part of the purchase price allocation exercise on the acquisition of the Techno Fibre Companies. It has remaining amortisation period of 12 years (2016: 13 years). 136 DESTINI BERHAD Financial Statements Notes to the 31 December 2017