Maxis Berhad | Annual Report 2013

121 OVERVIEW OUR BUSINESS STRATEGIC REVIEW CORPORATE GOVERNANCE FINANCIAL STATEMENTS Maxis Berhad Annual Report 2013 OTHER INFORMATION 16 INTANGIBLE ASSETS (CONTINUED) The remaining amortisation periods at the reporting date are as follows: GROUP 2013 2012 Customer acquisition costs 1 to 23 months 1 to 23 months Other spectrum rights 48 months – Additions in intangible assets during the financial year include purchase by means of finance lease amounting to RM12,453,000 (2012: RM Nil). The carrying amount of intangible assets held under a finance lease at the reporting date is RM11,623,000 (2012: RM Nil). Impairment testing for CGU containing goodwill and telecommunications licenses with allocated spectrum rights For the purpose of impairment testing, carrying amounts of goodwill and telecommunications licenses with allocated spectrum rights are allocated to the Group’s CGUs identified as Mobile services. The recoverable amount of a CGU is determined based on value in use calculations. These calculations use pre-tax cash flow projections based on internally approved financial budgets covering five years (2012: five years) period which reflect management’s expectations of revenue and EBITDA margin based on past experience and future expectations of business performance. The key assumptions used in the value in use calculations are as follows: (a) five years (2012: five years) financial budget period; (b) post-tax discount rate of 8.0% (2012: 8.1%). In accordance with the requirements of MFRS 136 “Impairment of Assets”, this translate into pre-tax discount rate of 16.0% (2012: 14.0%); and (c) terminal growth rate of 1.0% (2012: 1.0%). The key assumptions represent management’s assessment of future trends in the regional mobile telecommunications industry and are based on both external sources and internal sources. The discount rates used are pre-tax and reflect specific risks relating to the Mobile services. The forecasts are most sensitive to changes in discount rates in the forecast period. Based on the sensitivity analysis performed, the Directors have concluded that any variation of 10% in the base case assumptions would not cause the carrying amount of the CGU to exceed its recoverable amount.