153 6. GOODWILL ON CONSOLIDATION AND INTANGIBLE ASSETS (continued) Goodwill, brand names and hospital licences are allocated to the Group’s operating divisions which represent the lowest level within the Group at which the goodwill, brand names and hospital licences are monitored for internal management purposes. Brand names and hospital licences were acquired as part of business combinations and the economic benefits from utilising them is expected to continue indefinitely without significant costs. The aggregate carrying amounts of goodwill, brand names and hospital licences allocated to each operating unit were as follows: Goodwill Brand names Hospital licences 2024 RM’mil 2023 RM’mil 2024 RM’mil 2023 RM’mil 2024 RM’mil 2023 RM’mil Group Singapore healthcare services 5,832 6,800 1,634 1,145 – – Malaysia healthcare services 5,334 2,467 166 152 12 12 India healthcare services 1,814 1,942 – – – – China clinics healthcare services 42 41 – – – – Türkiye and Europe healthcare services 2,308 1,998 846 732 434 412 PLife REIT# 155 179 – – – – Labs services 817 869 – – – – 16,302 14,296 2,646 2,029 446 424 # Parkway Life Real Estate Investment Trust (“PLife REIT”). Amortisation The amortisation of customer relationships, capitalised development costs and brand use rights were recognised in ‘amortisation of intangible assets’ in the statements of profit or loss and other comprehensive income. Impairment testing for cash-generating units containing goodwill, brand names and hospital licences (a) Healthcare services and Labs services CGUs Key assumptions used in determining recoverable amount For the purpose of impairment testing, the carrying amounts of goodwill and intangible assets are allocated to the Group’s operating divisions which are groups of cash-generating units (“CGU”). Recoverable amount of each CGU, except for PLife REIT, is estimated based on its value in use. The value in use calculations apply a discounted cash flow model using cash flow projections based on past experience, actual operating results, approved financial budget for 2025 and 5-year business plans with a perpetual terminal value. The key assumptions for the computation of value in use of goodwill, brand names and hospital licences included the following: (i) Anticipated annual revenue growth rates for 2025 to 2029 (2023: 2024 to 2028): 2024 2023 Per annum Per annum Singapore healthcare services 4% – 9% 4% – 8% Malaysia healthcare services 12% – 27% 11% – 12% India healthcare services 9% – 13% 10% – 14% China clinics healthcare services 9% – 23% 16% – 45% Türkiye and Europe healthcare services 21% – 43% 13% – 71% Labs services − India 8% – 11% 9% – 12% − Singapore 4% – 6% 8% – 9%
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