Registration No. 200301030845 (633265-K) - 98 - 10. Intangible Assets (Cont’d) (b) Impairment testing for cash generating units (“CGU”) containing goodwill (Cont’d) The aggregate carrying amount of goodwill allocated to each subsidiary is as follows: 30.6.2024 31.12.2022 RM RM Destini Oil Services Sdn. Bhd. ("DOSSB") - 67,158,888 Group The recoverable amount of the goodwill allocated to each CGU is determined based on a value-in-use, determined by discounted future cash flows. The impairment of goodwill is recognised when the recoverable amount is estimated at lower than the cost of investment. The recoverable amount for DOSSB was based on its value-in-use and was determined by discounting the future cash flows generated from the continuing use of those units and was based on the following key assumptions: (i) Cash flows were projected based on actual operating results and five years business plan for two major sources of income which are tubular running services (“TRS”); (ii) Revenue was projected the management’s best estimate of the contract value, taking into consideration of the project timeline set out by Malaysia Petroluem Management, types of projects and scope of works to be conducted and contract sum of the letter of awards from customers and the expected pipeline from customers; With regards to the assessments of value-in-use of these CGUs, management believes that no reasonably possible changes in any of the key assumptions would cause the carrying values of these units to differ materially from their recoverable amounts except for the changes in prevailing operating environment which is not ascertainable. Based on management’s impairment review, the recoverable amount is lower than the carrying amount of the CGU. An impairment loss of RM67,158,888 (31.12.2022: RMNil) was recognised during the financial year. 175 DESTINI BERHAD ANNUAL REPORT 2024
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