Wah Seong Corporation Berhad Annual Report 2020

126 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 7 GOODWILL AND OTHER INTANGIBLE ASSETS (CONTINUED) Sensitivity CGU A As at 31 December 2020, the recoverable amount of CGU A is estimated to exceed the carrying amounts and is not sensitive to any reasonable change in the key assumptions. As at 31 December 2019, the recoverable amounts of CGU A is estimated to exceed the carrying amounts. The recoverable amounts of CGU A would equal its carrying amount if the key assumptions were to change as disclosed below. 2019 From To Revenue growth rate for 5 years 7.1% 6.5% Pre-tax discount rate 12.5% 12.9% Growth rate for terminal value 1.5% <0% Reasonably possible changes to the key assumptions would have decreased the carrying amounts of CGU A as follows: Group 2019 RM’000 Revenue growth rate (1% decrease) 12,012 Pre-tax discount rate (0.5% increase) 16,055 There are no reasonably possible changes in the terminal growth rate that would have changed the carrying amounts of CGU A. CGU B As at 31 December 2020 and 31 December 2019, the recoverable amount of CGU B is estimated to exceed the carrying amounts and is not sensitive to any reasonable change in the key assumptions.