Sasbadi Annual Report 2021

86 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 86 7. INTANGIBLE ASSETS (continued) (c) 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 15 years as the management estimates that the intellectual properties can be used for commercial activities for a duration of 15 years. Development costs and software are amortised over 10 years. (d) 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 2021 2020 RM’000 RM’000 Sanjung Unggul Group 10,253 10,253 Distinct Motion Group - 533 Pinko Creative 178 178 10,431 10,964 During the financial year, an impairment loss on goodwill amounting to RM533,000 (2020: Nil) has been recognised in respect of Distinct Motion Group CGU within other operating expenses in the statements of profit or loss due to its deteriorating financial performance arising from COVID-19 pandemic. In assessing whether goodwill is impaired, the carrying amount of the CGU (including goodwill) is compared with the recoverable amount of the CGU.