NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025 FINANCIAL PERFORMANCE 196 3. PROPERTY, PLANT AND EQUIPMENT (CONT’D) Material accounting policy information (cont’d) (c) Depreciation Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment from the date that they are available for use. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative periods are as follows:- Freehold Land and Buildings 2% Motor Vehicles 20% Furniture and Fittings 10%-20% Renovation 9%-20% Computer Equipment and Software 14%-50% Plant and Machinery 15%-20% Office Equipment 10%-20% Other Assets 10%-20% During the financial year ended 31 December 2025, impairment charge of RM2,236,000 (2024: RMNil) was recorded in the consolidated statement of profit or loss, considering that the relevant subsidiaries have been incurring losses and that it was not probable that profits will be available in the foreseeable future. Impairment tests for property, plant and equipment Management has carried out impairment test review for property, plant and equipment based on the recoverable amount of each cash-generating unit (“CGU”). The recoverable amount has been determined based on a value in use (“VIU”) calculation using cash flow projections from financial budgets approved by directors covering a 3-year period. The pre-tax discount applied to the cash flow projections are as follows:- Group 2025 2024 % % CGU Malaysia 10.54% - Singapore 9.42% -
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