154 SECTION 05 : FINANCIAL STATEMENTS & OTHERS Notes To The Financial Statements (Cont’d) 31 March 2025 Registration No: 58 199201005296 (236800 - T) 6. INVESTMENTS IN SUBSIDIARIES (continued) (h) During the financial year, the Company recognised an impairment loss on investments in subsidiaries of RM26,849,000 (2024: RM12,109,000) due to decline in operations of certain subsidiaries. Adverse adjustments were made to the forecasted operating cash flows included in the value-in-use calculations. The recoverable amounts were determined using pre-tax discount rates of 10% (2024: 7%) 7. GOODWILL ON CONSOLIDATION Group 2025 2024 RM’000 RM’000 Cost At beginning of the financial year - 400 Disposal of a subsidiary - (400) - - Accumulated impairment losses At beginning of the financial year - (400) Disposal of a subsidiary - 400 - - Carrying 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. This requires an estimation of the value-in-use of the subsidiaries to which goodwill is allocated. Estimating a value-in-use amount requires management to make an estimate of the expected future cash flows from the subsidiaries and also to choose a suitable discount rate in order to calculate the present value of those cash flows.
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