Serba Dinamik Annual Report 2016

134 SERBA DINAMIK HOLDINGS BERHAD Company No.1167905 P NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 7. INTANGIBLE ASSETS - GROUP License Goodwill and rights Total Note RM RM RM Cost At 25 May 2016 – – – Acquisition through subsidiaries 27 3,831,875 4,249 3,836,124 At 31 December 2016 3,831,875 4,249 3,836,124 Impairment testing for cash-generating units containing goodwill For the purpose of impairment testing, goodwill is allocated to the Group’s operating activities which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. The recoverable amount of this goodwill is allocated to a subsidiary, which hold a DNV Business Assurance Management System Certification ISO 9001:2008, which is valid for the design and manufacture of fire pumps and power generation systems to the offshore industry. It is based on its value in use, determined by future cash flows to be generated by the subsidiary. 8. DEFERRED TAXATION - GROUP Deferred tax assets and liabilities are attributable to the following: Assets Liabilities Net 2016 2016 2016 RM RM RM Property, plant and equipment – 14,242,933 14,242,933 Post employment benefits (702,966) – (702,966) Others – 112,000 112,000 Tax (assets)/liabilities (702,966) 14,354,933 13,651,967