ENRA Group Berhad Annual Report 2018

82 E N R A G R O U P B E R H A D ( 2 3 6 8 0 0 - T ) NOTES TO THE FINANCIAL STATEMENTS 31 March 2018 cont’d 9. GOODWILL ON CONSOLIDATION (Cont’d) Sensitivity to changes in assumptions The management believes that a reasonably possible change in the key assumptions on which management has based its determination of the CGU’s recoverable amount would not cause the CGU’s carrying amount to further exceed its recoverable amount. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised, but instead, it is reviewed for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value may be impaired. For the purpose of impairment testing, goodwill is allocated to the operating divisions of the Group, which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. Goodwill has been allocated to the cash-generating units (“CGU”) of the Group. The recoverable amount of a CGU requires management’s estimate and and is determined based on value-in-use calculations using cash flow projections based on financial budgets approved by management covering a five-year period. 10. PROPERTY DEVELOPMENT COSTS Group 2018 2017 RM’000 RM’000 Leasehold land, at cost Balance as at 1 April - 74,473 Incurred during the financial year - 5,932 Balance as at 31 March - 80,405 Development costs Balance as at 1 April - 159,325 Incurred during the financial year - 38,259 Balance as at 31 March - 197,584 Total land and development costs - 277,989 Less: Cumulative costs recognised in the statements of profit or loss and other comprehensive income Balance as at 1 April - (168,435) Recognised during the financial year - (80,388) Balance as at 31 March - (248,823) - 29,166 Transfer to inventories - (29,166) - -