7 FINANCIAL STATEMENTS 303 2. ACCOUNTING POLICIES (CONTD.) 2.5 Significant accounting judgements and estimates (contd.) (b) Key sources of estimation uncertainty (contd.) (viii) Purchase price allocation exercises In the previous financial year, 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 KAO 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. In the previous financial year, 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 19 and 47(g)(h). (ix) Deferred consideration payable Deferred consideration payable arose from the acquisition of Kaizen Group in the previous 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 2025, management assessed the fair value of the deferred consideration payable for Kaizen Group to be RM12.6 million (2024: 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 Notes 36(e) and 47(h).
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