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133
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
16 INTANGIBLE ASSETS (CONTINUED)
The remaining amortisation periods at the reporting date are as follows:
Group
2014
RM’000
2013
RM’000
Customer acquisition costs
1 to 23 months
1 to 23 months
Other spectrum rights
36 months
48 months
Additions in intangible assets during the financial year include purchase by means of finance lease amounting to RM Nil (2013:
RM12,453,000). The carrying amount of intangible assets held under a finance lease at the reporting date is RM9,132,000 (2013:
RM11,623,000).
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 (2013: five years) period which reflect management’s
expectations of revenue and EBITDA based on past experience and future expectations of business performance.
The key assumptions used in the value in use calculations are as follows:
(a) revenue and EBITDA growth rates for five years (2013: five years) financial budget period;
(b) post-tax discount rate of 8.0% (2013: 8.0%). In accordance with the requirements of MFRS 136 “Impairment of Assets”, this
translates into pre-tax discount rate of 15.2% (2013: 16.0%); and
(c) terminal growth rate of 2.0% (2013: 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.
