DESTINI Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS 9. Intangible Assets (Cont’d) (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 11 years (2017: 12 years). Brand Goodwill Product technology Development costs Total RM RM RM RM RM Group 2017 At cost At 1 January 2017 1,617,000 184,248,933 6,746,994 10,046,117 202,659,044 Additions - - - 551,511 551,511 Acquisition through business combination - 11,827,431 - - 11,827,431 Disposal of subsidiary - (1,843,063) - (642,530) (2,485,593) Exchange differences - (765,908) - (276,838) (1,042,746) At 31 December 2017 1,617,000 193,467,393 6,746,994 9,678,260 211,509,647 Accumulated amortisation At 1 January 2017 215,600 - - 3,417,912 3,633,512 Recognised in profit or loss 107,800 - 963,856 408,643 1,480,299 Disposal of subsidiary - - - (642,530) (642,530) Exchange differences - - - (127,243) (127,243) At 31 December 2017 323,400 - 963,856 3,056,782 4,344,038 Accumulated impairment losses At 1 January 2017 - 1,843,063 - - 1,843,063 Recognised in profit or loss - 1,334,431 - - 1,334,431 Disposal of subsidiary - (1,843,063) - - (1,843,063) At 31 December 2017 - 1,334,431 - - 1,334,431 Carrying amount At 31 December 2017 1,293,600 192,132,962 5,783,138 6,621,478 205,831,178 DESTINI BERHAD ANNUAL REPORT 2018 156