Tropicana Corporation Berhad Annual Report 2020

20. INVESTMENTS IN JOINT VENTURES (CONT'D.) (b) Information of joint venture that is individually not material is as follows: 2020 2019 RM'000 RM'000 The Group's share of profit/(loss) before tax 1,031 (284) The Group's share of profit/(loss) after tax, representing total comprehensive income/(loss) 674 (284) Carrying amount of the Group's interest 8,087 9,903 (c) The joint ventures had no contingent liabilities as at 31 December 2020 and 31 December 2019. 21. OTHER INVESTMENTS Group Company 2020 2019 2020 2019 RM'000 RM'000 RM'000 RM'000 At FVTPL: Quoted shares 150,974 – – – Transferable corporate golf club memberships 887 312 887 312 151,861 312 887 312 22. INTANGIBLE ASSETS Licenses with indefinite Goodwill Software useful life Total RM'000 RM'000 RM'000 RM'000 Group Cost At 1 January 2020 18,170 1,414 25,643 45,227 Additions 2,353 879 – 3,232 At 31 December 2020 20,523 2,293 25,643 48,459 Amortisation and impairment At 1 January 2020 (18,170) (377) (25,643) (44,190) Amortisation (Note 9) – (342) – (342) At 31 December 2020 (18,170) (719) (25,643) (44,532) Carrying amount 2,353 1,574 – 3,927 22. INTANGIBLE ASSETS (CONT'D.) Licenses with indefinite Goodwill Software useful life Total RM'000 RM'000 RM'000 RM'000 Group Cost At 1 January 2019 18,170 1,593 25,643 45,406 Adjustments 1 – (179) – (179) At 31 December 2019 18,170 1,414 25,643 45,227 Amortisation and impairment At 1 January 2019 (18,170) (106) – (18,276) Amortisation (Note 9) – (271) – (271) Impairment loss during the financial year (Note 9) – – (25,643) (25,643) At 31 December 2019 (18,170) (377) (25,643) (44,190) Carrying amount – 1,037 – 1,037 In the previous financial year, an impairment loss of RM25,643,000 has been recognised in the profit or loss of the Group subsequent to the disposal of assets of the related subsidiaries. 1 In the previous financial year, the Group has finalised certain costs incurred for the intangible assets amounting to RM179,000. (a) Key assumptions used in value-in-use calculations The recoverable amounts of the CGUs have been determined based on value-in-use calculations using cash flow projections based on financial budgets approved by management. The following describes each key assumption on which management has based its cash flow projections to undertake impairment testing of goodwill. (i) Budgeted gross margin The basis used to determine the value assigned to the budgeted gross margin is the average rate achieved in the financial year immediately before the budgeted year increased for expected efficiency improvements. (ii) Pre-tax discount rate The discount rates used are pre-tax ranging from 7% to 8% (2019: 7% to 8%) and reflect specific risks relating to the relevant segments. (b) Sensitivity to changes in assumptions With regard to the assessment of value-in-use of the CGUs, management believes that no reasonable possible change in any of the above key assumptions would cause the carrying amounts of the unit to materially differ from its recoverable amount. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 ANNUAL REPORT 2020 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 244 245