Annual report 2014
101
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
9. GOODWILL (continued)
Group
Balance as
at 1.1.2013/
31.12.2013
Carrying amount
RM
Goodwill
-
At 31.12.2013
Cost
Accumulated
impairment
Carrying
amount
Group
RM
RM
RM
Goodwill
2,968,029 (2,968,029)
-
Goodwill arising from business combinations has been allocated to two (2) individual cash-generating units
(“CGU”) for impairment testing as follows:
Thailand
(GHL
(Thailand)
Co., Ltd.)
Malaysia
E-Pay
Group**
Total
RM
RM
RM
Goodwill
2,968,029 105,629,787 108,597,816
Less: Impairment loss
(2,968,029)
-
(2,968,029)
Goodwill
- 105,629,787 105,629,787
** E-Pay Group represents newly acquired subsidiary, e-pay Asia Pty. Ltd.. The goodwill arising from the
acquisition is disclosed in Note 10(c) to the financial statements.
For the purpose of impairment testing, goodwill is allocated to the operating divisions of the Group which
represent the lowest level within the Group at which the goodwill is monitored for internal management
purposes.
The recoverable amounts of the CGUs have been determined based on value in use calculations using
cash flow projections from financial budgets approved by management covering a five-year period.
The calculations of value in use for the CGUs are most sensitive to the following assumptions:
(a) Growth rate
The anticipated annual revenue growth rates used in the cash flows are 3.0% for the financial budget
period.
(b) Pre-tax discount rate
Discount rates reflect the current market assessment of the risks specific to the Group. Discount rate of
10.5% used for cash flows discounting purpose is the Group’s weighted average cost of capital. This
is the benchmark used by management to assess the operating performance of the Group and to
evaluate future investment proposals.
