222 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʧ (cont’d) 10. GOODWILL ON CONSOLIDATION (CONT’D) 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: Group 2024 2023 RM’000 RM’000 E-business activities 9,422 9,422 Provision of credit terminal, hardware, solutions and other related services 5,689 5,689 Other cash-generating units 4,891 4,891 20,002 20,002 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 five years. The key assumptions used in the determination of the recoverable amounts value in use are as follows: Gross margin Growth rate Discount rate 2024 2023 2024 2023 2024 2023 E-business activities 85% 85% 3% - 5% 3% - 5% 11% 14% Provision of credit card, terminal, hardware, solutions and other related service 35% - 40% 35% - 40% 15% - 27% 15% - 27% 11% 14% (a) Budgeted gross margin Average gross margins achieved in the year immediately before the budgeted year. (b) Growth rate The growth rates used are based on the expected projection of e-business and provision of credit card terminal, hardware, solutions and other related services. There is no growth rate in perpetuity to arrive at terminal value. (c) Discount rate (pre-tax) Reflect specific risk relating to the relevant cash generating unit. The values assigned to the key assumptions represent management’s assessment of future trends in the cashgenerating units and are based on both external sources and internal historical data. The Directors believe that there is no reasonable change in the above key assumptions applied that is likely to materially cause the respective cash generating unit carrying amount of the goodwill to exceed its recoverable amounts. Material accounting policy information Goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment annually or more frequent when there is objective evidence that the carrying amount may be impaired.
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