NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 13. INTANGIBLE ASSETS (CONT'D) 13.1 Goodwill The Group 2025 2024 RM RM Goodwill on acquisition - At cost At beginning of year 5,652,265 6,214,372 Effect of movements in exchange rate (333,750) (562,107) At end of year 5,318,515 5,652,265 Accumulated impairment loss At beginning and end of year (104,228) (104,228) Net Carrying Amount 5,214,287 5,548,037 Impairment test of goodwill Goodwill on acquisition is allocated to the Group’s cash-generating units (“CGUs”), business segments as follows: The Group 2025 2024 RM RM Plantation 5,181,918 5,515,668 Property development 32,369 32,369 5,214,287 5,548,037 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 17 years (2024: 6 years) cash flows projection in respect of impairment test for goodwill on the plantation segment are: (i) discount rate of 9.0% (2024: 11.0%) which is pre-tax and reflected specific risks of the plantation segment in Indonesia; (ii) oil palm trees with an average life of 25 years (2024: 25 years) with the first three years as immature and remaining years as mature which is the average life cycle of the trees; (iii) crude palm oil (“CPO”) average selling price of RM3,500 (2024: RM3,500) per metric tonne based on the management’s estimate; 6 Financial Insights Through Numbers 1 3 5 2 4 7 PG | 221 ANNUAL REPORT 2025 MKH BERHAD
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