2021 UEM Edgenta Annual Report

UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 237 236 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 15. INTANGIBLE ASSETS (CONTD.) Software RM’000 Softwarein-progress RM’000 Total RM’000 Company Cost At 1 January 2020 2,060 35,952 38,012 Additions 4,844 3,590 8,434 Disposals (274) - (274) Transfer 39,188 (39,188) - At 31 December 2020 45,818 354 46,172 At 1 January 2021 45,818 354 46,172 Additions 25 - 25 Disposals (180) - (180) Transfer 354 (354) - At 31 December 2021 46,017 - 46,017 Accumulated amortisation At 1 January 2020 1,163 - 1,163 Amortisation for the year (Note 7) 3,742 - 3,742 Disposals (106) - (106) At 31 December 2020 4,799 - 4,799 At 1 January 2021 4,799 - 4,799 Amortisation for the year (Note 7) 5,325 - 5,325 At 31 December 2021 10,124 - 10,124 Net carrying amount At 31 December 2021 35,893 - 35,893 At 31 December 2020 41,019 354 41,373 15. INTANGIBLE ASSETS (CONTD.) (a) Goodwill Impairment testing of goodwill Goodwill is allocated and monitored by management across the following CGU: 2021 RM’000 2020 RM’000 Asset consultancy: Opus Group Berhad 38,636 38,636 Healthcare support: Edgenta Mediserve Sdn. Bhd. (“EMS”) 26,982 26,982 Edgenta UEMS Group: - Malaysia 64,571 63,614 - Singapore 272,659 268,620 - Taiwan 10,874 10,714 Property and Facility Solutions: EGT Group 49,600 49,600 Infrastructure services: Edgenta PROPEL Berhad 76,372 76,372 539,694 534,538 Goodwill is tested for impairment on an annual basis by comparing the carrying amount of the CGU with their respective recoverable amounts, which is based on VIU. The VIU is determined by discounting future cash flows over a period of five years including a terminal value. The future cash flows are based on management’s future business plan, which is the best estimate of immediate future performance. For EMS, the VIU is determined by discounting cash flows for a period of 13 years assuming an extension of 10 years concession period with no terminal value.

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