My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 183 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 12. DEVELOPMENT COSTS (CONT’D) The Group The Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Included in additions, at cost, during the financial year are:- Electronic Government Services 48,710 - 24,710 - Immigration related integrated modules 70,000 - 70,000 - MST Portal 12,000 - - - Staff costs 225 - - - 130,935 - 94,710 - 13. GOODWILL ON CONSOLIDATION The Group 2020 2019 RM’000 RM’000 Cost 18,549 18,549 Accumulated impairment losses (95) (95) 18,454 18,454 Goodwill on consolidation is stated at cost and arose from the acquisition of the subsidiaries. The carrying amounts of goodwill allocated to each cash-generating unit are as follows:- The Group 2020 2019 RM’000 RM’000 E-business activities 9,422 9,422 Provision of credit card terminal, hardware, solutions and other related services 5,689 5,689 Other cash-generating units 3,343 3,343 18,454 18,454 The Group has assessed the recoverable amount of goodwill allocated and determined that no additional impairment is required. The recoverable amounts of cash-generating units are determined using the value in use approach, and this is derived from the present value of the future cash flows from the operating segments computed based on the projections of financial budgets approved by management covering a period of 5 years. The key assumptions used in the determination of the recoverable amounts value-in-use are as follows:- Gross Margin Growth Rate Discount Rate 2020 2019 2020 2019 2020 2019 E-business activities 85% 85% - 86% 3% - 5% 5% 12% 13% Provision of credit card terminal, hardware, solutions and other related services 35% - 40% 35% - 38% 20% - 32% 27% - 29% 12% 13%