Sasbadi Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 99 ANNUAL REPORT 2017 5. Intangible assets (continued) 5.1 Goodwill Subsumed within goodwill are the brand names and the synergies expected to be achieved from integrating Sanjung Unggul Sdn. Bhd. (“Sanjung Unggul”) and its subsidiaries (“Sanjung Unggul Group”) and Distinct Motion Sdn. Bhd. and its subsidiary (“Distinct Motion Group”) into the Group’s existing publishing and applied learning products business. 5.2 Intellectual properties The intellectual properties comprise the publishing rights and production files in relation to educational and learning materials for national schools and institutes of teacher education acquired by the Group as well as the publishing rights and production files in relation to dictionaries, comics, storybooks, educational and learning materials for early education and national-type Chinese schools recognised through the acquisitions of United Publishing House (M) Sdn. Bhd. and Sanjung Unggul by the Company. The intellectual properties are amortised over 10 years as the management estimates that the intellectual properties can be used for commercial activities for a duration of 10 years. 5.3 Impairment testing for cash-generating units containing goodwill For the purpose of impairment testing, goodwill is allocated to the Group’s cash - generating units (“CGU”) which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. The aggregate carrying amounts of goodwill allocated to each unit are as follows: Group 2017 2016 RM’000 RM’000 Sanjung Unggul Group 10,253 10,253 Distinct Motion Group 533 - 10,786 10,253 In assessing whether goodwill is impaired, the carrying amount of the CGU (including goodwill) is compared with the recoverable amount of the CGU.