22. INTANGIBLE ASSETS (CONT’D.) Goodwill RM’000 Licenses with indefinite useful lives and timber rights RM’000 Total RM’000 Group Cost At 1 January 2024/31 December 2024 25,829 27,843 53,672 Amortisation and impairment At 1 January 2024 22,161 25,863 48,024 Amortisation (Note 9) - 44 44 At 31 December 2024 22,161 25,907 48,068 Carrying amount 3,668 1,936 5,604 (a) Key assumptions used in value-in-use calculations The recoverable amounts of the CGUs have been determined based on value-in-use calculations using cash flow projections based on financial budgets approved by management. The following describes each key assumption on which management has based its cash flow projections to undertake impairment testing of goodwill. (i) Budgeted gross margin The basis used to determine the value assigned to the budgeted gross margin is the average rate achieved in the financial year immediately before the budgeted year increased for expected efficiency improvements. (ii) Pre-tax discount rate The discount rates used are pre-tax ranging from 7% to 8% (2024: 7% to 8%) and reflect specific risks relating to the relevant segments. (b) Sensitivity to changes in assumptions With regard to the assessment of value-in-use of the CGUs, management believes that no reasonable possible change in any of the above key assumptions would cause the carrying amounts of the unit to materially differ from its recoverable amount. 327
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