NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2025 (cont’d) 6. Development costs (CONT’D) Development costs Intangible assets under development Total RM’000 RM’000 RM’000 Company Cost At 1 January 2024 232,412 - 232,412 Additions 11,348 - 11,348 At 31 December 2024 243,760 - 243,760 Additions 46,610 - 46,610 Disposal to a subsidiary (45,000) - (45,000) At 31 December 2025 245,370 - 245,370 Accumulated amortisation At 1 January 2024 36,817 - 36,817 Charge for the financial year 10,200 - 10,200 At 31 December 2024 47,017 - 47,017 Charge for the financial year 10,200 - 10,200 At 31 December 2025 57,217 - 57,217 Carrying amount At 31 December 2025 188,153 - 188,153 At 31 December 2024 196,743 - 196,743 Development costs were mainly expenditures incurred for the development of Zetrix platform and applications, JPJ Test taking and license module, payment gateway and portal development. The amortisation charges are recognised in statements of profit or loss and other comprehensive income under the “Cost of sales” and “Other expenses” line items. Development costs with finite useful lives are amortised over a period of 2 to 5 years or over the expected level of usage. Certain development costs are not amortised as these assets are not available for use and are still under development as at the end of the financial year. (a) Impairment testing for cash-generating units (“CGU”) Management has carried out a review of the recoverable amounts of the project development costs based on value in use calculations. The key assumptions for the value in use calculations are regarding the discount rates and using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGU to which the asset belongs. The growth rates are based on past results and budgets done by management. The Group and the Company prepare cash flows forecasts derived from the most recent financial forecasts approved by management for the next 5 years. The rate used to discount the forecast cash flows is 11%. As at 31 December 2025, any reasonably possible change to the key assumptions applied not likely to cause the recoverable amounts to be below the carrying amounts of the respective intangible assets. Having considered the above, management is of the view that there is no impairment of development costs as at 31 December 2025. 230
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