90 Annual Report 2025 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2025 (CONT’D) 9. OTHER INVESTMENTS (CONT’D) Details of Level 3 fair value measurements are as follows: Unquoted shares outside Malaysia Valuation method and key inputs Significant unobservable inputs Relationship of unobservable inputs Discounted future cash flows. Discount rate of 8.70% (2024: 8.24%) The higher the discount rate, the lower the fair value. Sales growth rate of 34% (2024: 32%) The higher the sales growth rate, the higher the fair value. Material accounting policy information Investment in equity investment are not held for trading. At initial recognition, the Group has irrevocably elect to present subsequent changes in the fair value of the investments in other comprehensive income. This election is made on an investment-by-investment basis. On derecognition, gains and losses accumulated in other comprehensive income are not reclassified to profit or loss. 10. GOODWILL ON CONSOLIDATION Group 2025 2024 RM RM Cost At 1 July 4,017,945 29,454 Additions through business combination - 3,988,491 At 30 June 4,017,945 4,017,945 Goodwill on consolidation is stated at cost and arose from acquisition of the subsidiary companies. Allocation of goodwill For the purpose of impairment testing, goodwill is allocated to the Group’s operating divisions which represent lowest level of cash-generating units (“CGU”) within the Group at which the goodwill is monitored for internal management purposes. The carrying amounts of goodwill allocated to application solutions division amounting to RM4,017,945 (2024: RM4,017,945). The Group has assessed the recoverable amount of goodwill allocated and determined that no additional impairment is required. The recoverable amounts of cash-generating units are determined using the value in use approach, and this is derived from the present value of the future cash flows from the operating segments computed based on the projections of financial budgets approved by management covering a period of five years.
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