NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 13. INTANGIBLE ASSETS (CONT'D) 13.1 Goodwill (Cont'd) (iv) average CPO extraction rate of 21.0% (2024: 21.5%) based on the industry trend and past performance; (v) average annual oil palm yield per hectare of 21 to 25 metric tonnes (2024: 21 to 25 metric tonnes) based on management’s estimate and historical yield; and (vi) replanting cost, including cost to maturity of RM30,000 per hectare (2024: Nil) based on the management’s estimate. 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 to materially exceed its recoverable amounts. During the financial year, the management take into consideration of replanting when the oil palm trees reach the age of 25 years which is within the first lease term of the prepaid lease payments as part of the assumptions in assessing the full value-in-use calculation for CGU. Accordingly, the value-in-use calculations reflect the remaining unexpired lease period of the prepaid lease payments. 13.2 Other intangible assets The Group Capitalised development costs Development rights Total RM RM RM 2025 At beginning of year 58,697,885 11,015,954 69,713,839 Amortisation (Note 6) (1,124,554) - (1,124,554) At end of year 57,573,331 11,015,954 68,589,285 2024 At beginning of year 62,774,394 - 62,774,394 Additions (Note 16(c)) - 11,015,954 11,015,954 Written off (Note 6) (2,910,371) - (2,910,371) Amortisation (Note 6) (1,166,138) - (1,166,138) At end of year 58,697,885 11,015,954 69,713,839 PG | 222 ANNUAL REPORT 2025 MKH BERHAD
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