GHL System Berhad Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 CONT’D 14. INTANGIBLE ASSETS (Cont’d) Company 2022 Balance as at 1.1.2022 Amortisation charge for the financial year Balance as at 31.12.2022 RM RM RM Carrying amount Completed development costs 110,044 (26,247) 83,797 As at 31.12.2022 Company Cost Accumulated amortisation Carrying amount RM RM RM Completed development costs 13,162,478 (13,078,681) 83,797 Intangible assets are initially measured at cost. After initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any. The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with finite lives are assessed for any indication that the asset may be impaired and are amortised on a straight-line basis over their estimated economic useful lives, not exceeding ten (10) years. Intangible assets that have an indefinite useful life are tested annually for impairment or more frequently if events or changes in circumstances indicate that the intangible asset might be impaired. 15. GOODWILL Group 2023 2022 RM RM Carrying amount Balance as at beginning/end of financial year 168,638,985 168,638,985 Cost 171,607,014 171,607,014 Accumulated impairment losses (2,968,029) (2,968,029) Carrying amount 168,638,985 168,638,985 (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. Goodwill is tested for impairment by the Group at least on an annual basis, and whenever there is an indication that the goodwill may be impaired. 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. 118 GHL SYSTEMS BERHAD 199401007361 (293040-D)

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