2. ACCOUNTING POLICIES (CONTD.) 2.5 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTD.) (b) Key sources of estimation uncertainty (contd.) (vii) Fair value of investment properties The Group carries its investment properties at fair value, with changes in fair value being recognised in profit or loss. The Group engaged independent professional valuers to perform value on its investment properties as at 31 December 2024. The valuation methodology commonly used is the comparison method which is based on comparable historical transactions adjusted for specific market factors such as location, size, condition, accessibility and design of the respective properties. The details of the investment properties are disclosed in Note 14. (viii)Purchase price allocation exercises The Group has carried out purchase price allocation (“PPA”) exercises arising from the acquisition of Kaizen Owner Association Management Services L.L.C (“KOA”), Kaizen AMS Property Supervision L.L.C (“KAMS”) (both KOA and KAMS collectively known as “Kaizen Group”) and Opus Consultants (M) Sdn Bhd, which are based on the established fair value of the assets acquired, including the fair value of any intangible assets, and liabilities assumed at combination date. The PPA exercises involved significant judgement by management in determining the fair value of assets and liabilities assumed and identification and valuation of intangible assets as at the combination date. Resulting from the PPA exercises, the Group recognised intangible assets relating to customer contracts and customer relationships of RM9.8 million and RM6.8 million, respectively and goodwill of RM70.8 million in relation to the acquisition of Kaizen Group. The Group also recognised a negative goodwill of RM9.5 million to the profit or loss arising from the step-up acquisition of Opus Consultants (M) Sdn Bhd. Further details are disclosed in Notes 44(a) and 44(c). (ix) Deferred consideration payable Deferred consideration payable arose from the acquisition of Kaizen Group during the financial year. At the reporting period, the Group assesses the fair value of the deferred consideration payable based on projected profitability of Kaizen Group, and considers the current and projected market conditions. As at 31 December 2024, management assessed the fair value of the deferred consideration payable for Kaizen Group to be RM12.2 million due to the high probability of Kaizen Group meeting the performance targets. Further details of the deferred consideration payable are disclosed in Note 36(e). Notes to the Financial Statements For the year ended 31 December 2024 303 FINANCIAL STATEMENTS
RkJQdWJsaXNoZXIy NDgzMzc=