SECTION 4: FINANCIAL PERFORMANCE 180 Registration No: 199301009307 (264044-M) 42 5. INTANGIBLE ASSETS Goodwill Total RM’000 RM’000 Group Cost At 1 January 2022/31 December 2022/ 31 December 2023 1,417 1,417 The aggregate carrying amounts of goodwill allocated to each unit are as follows:- 2023 2022 RM’000 RM’000 Specialty retailer and wholesaler of golf equipment under MST Golf Sdn. Bhd. 1,378 1,378 Golf related services including golf event management and golf academy under MST Golf Management Sdn. Bhd. 39 39 1,417 1,417 Goodwill Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating unit that is expected to benefit from that business combination. The Group tests goodwill annually for impairment or more frequently if there are indications that goodwill might be impaired. The recoverable amount of the cash generating unit is determined based on the value in use. The value in use calculations is based on the discounted net cash projections based on financial budgets approved by management covering a period 3 years (2022: 5 years) with an estimated growth rate range between 0% to 8% (2022: 5%) and a weighted average cost of capital of 8.88% (2022: 6.34%). Cash flows projections during the budget period are based on the same expected gross margins and raw materials price inflation throughout the budget period. The Directors believe that any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit. 6. INVESTMENT IN SUBSIDIARIES Company 2023 2022 RM’000 RM’000 Unquoted shares, at cost - Within Malaysia 39,717 34,717 - Outside Malaysia 31,889 11,664 Total cost of investment 71,606 46,381
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