My EG Services Berhad Annual Report 2019

ANNUAL REPORT 2019 153 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2019 (CONT’D) FINANCIAL STATEMENTS 12. OTHER INVESTMENTS (CONT’D) Investment in an entity engaged in providing industry solutions, software development, data management, hardware and related accessories (Entity F) Unobservable Inputs Relationship of Unobservable Inputs to Fair Value Sensitivity Analysis (Assume All Other Variables Held Constant) (aa) Revenue growth rates of 40% Based on management’s experience and knowledge of market conditions of the specific industries. The higher the revenue growth rate, the higher the fair value. A 1% change in revenue growth rate would result in an increase/decrease in the fair value by RM297,000. (bb) Pre-tax operating profit margins of 60% Taking into account management’s experience and knowledge of market conditions of the specific industries. The higher the pre-tax operating margins, the higher the fair value. A 1% in pre-tax operating profit margin would result in an increase/decrease in the fair value by RM233,000. (cc) Discount rate of 21% Reflects current market assessments of the uncertainty in the amount and timing of cash flows. The higher the discount rate, the lower the fair value. A 1% change in discount rate would result in a decrease/ increase in the fair value by RM226,000. Management believes that no reasonable change in the above key assumptions would cause the carrying amount of other investments to exceed its recoverable amounts. 13. DEVELOPMENT COSTS The Group The Company 31.12.2019 30.9.2018 31.12.2019 30.9.2018 RM’000 RM’000 RM’000 RM’000 Cost:- At 1 October 2018/1 July 2017 20,624 20,730 10,267 10,267 Transfer during the financial period - (106) - - At 31 December 2019/30 September 2018 20,624 20,624 10,267 10,267 Accumulated amortisation:- At 1 October 2018/1 July 2017 (17,634) (15,340) (8,470) (7,095) Amortisation during the financial period (2,136) (2,294) (1,228) (1,375) At 31 December 2019/30 September 2018 (19,770) (17,634) (9,698) (8,470) 854 2,990 569 1,797 Development costs were incurred for the software development of the Electronic Government Services project and other related services.