GHL System Berhad Annual Report 2019

G H L S Y S T E M S B E R H A D 1 9 9 4 0 1 0 0 7 3 6 1 ( 2 9 3 0 4 0 - D ) 116 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 CONT’D 14. INTANGIBLE ASSETS (cont’d) (b) Included in the additions of intangible assets of the Group and of the Company are employee benefits capitalised amounting to RM851 (2018: RM21,230) and RM851 (2018: RM21,230) respectively. 15. GOODWILL Group Balance as at 1.1.2019 Acquisitions of subsidiary (Note 16) Balance as at 31.12.2019 RM RM RM Carrying amount Goodwill 168,638,985 11,332,252 179,971,237 As at 31.12.2019 Cost Accumulated impairment Carrying amount Group RM RM RM Goodwill 182,939,266 (2,968,029) 179,971,237 Group Balance as at 1.1.2018 Acquisitions of subsidiaries (Note 16) Balance as at 31.12.2018 RM RM RM Carrying amount Goodwill 105,629,787 63,009,198 168,638,985 As at 31.12.2018 Cost Accumulated impairment Carrying amount Group RM RM RM Goodwill 171,607,014 (2,968,029) 168,638,985 (a) Goodwill recognised in a business combination is an asset at the acquisition date and is initially measured at cost. After initial recognition, goodwill is measured at cost less accumulated impairment losses. The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value-in-use of the subsidiaries to which goodwill is allocated. Estimating a value-in-use amount requires management to make an estimate of the expected future cash flows from the subsidiaries and also to choose a suitable discount rate in order to calculate the present value of those cash flows.