154 Annual Report 2022 Notes to the Financial Statements For the Financial Year Ended 30 September 2022 INTANGILE ASSETS (CONT’D) 12. Goodwill (Cont’d) 12.1 Impairment test of goodwill Goodwill on acquisition is allocated to the Group’s cash-generating units (“CGUs”), business segments as follows: The goodwill allocated to property development segment is not significant in comparison with the Group’s total carrying amount of goodwill. Key assumptions used in the value-in-use calculations based on a 8 years (2021: 9 years) cash flows projection in respect of impairment test for goodwill on the plantation segment are: In assessing the value-in-use, management does not foresee any possible changes in the above key assumptions that would cause the carrying amounts of the goodwill plus the CGU to materially exceed their recoverable amounts. 2022 RM 2021 RM The Group 32,369 32,369 5,146,787 5,340,010 Plantation Property development 5,372,379 5,179,156 discount rate of 10.9% (2021: 11.8%) which is pre-tax and reflected specific risks of the plantation segment in Indonesia; oil palm trees with an average life of 25 years (2021: 25 years) with the first three years as immature and remaining years as mature which is the average life cycle of the trees; crude palm oil (“CPO”) average selling price of RM3,300 (2021: RM2,675) per metric tonne based on the management’s estimate; average CPO extraction rate of 20.5% (2021: 21%) based on the industry trend and past performance; and average annual oil palm yield per hectare of 25 to 29 metric tonnes (2021: 30 to 33 metric tonnes) based on management’s estimate and historical yield. (i) (ii) (iii) (iv) (v)
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