Wah Seong Corporation Berhad Annual Report 2019

126 WAH SEONG CORPORATION BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 8 GOODWILL AND OTHER INTANGIBLE ASSETS (CONTINUED) Sensitivity The recoverable amounts of CGU A and CGU B are estimated to exceed the carrying amounts at 31 December 2019 and 31 December 2018. The recoverable amounts of CGU A would equal its carrying amount if the key assumptions were to change as disclosed below. 2019 2018 From To From To CGU A Revenue growth rate for 5 years 7.1% 6.5% 13.5% 12.8% Pre-tax discount rate 17.9% 18.2% 21.7% 22.0% Growth rate for terminal value 1.5% <0% 2.0% 1.6% Reasonably possible changes to the key assumptions would have decreased the carrying amounts of CGU A as follows: Group RM’000 2019 Revenue growth rate (1% decrease) 12,012 Pre-tax discount rate (0.5% increase) 11,594 There are no reasonably possible changes in the terminal growth rate that would have changed the carrying amounts of CGU A. In the prior financial year, there were no reasonably possible changes in any of the key assumptions that would have changed the carrying amounts of CGU A. CGU B As at 31 December 2019, the recoverable amount of CGU B is not sensitive to the changes in the key assumptions. 9 DEFERRED TAX ASSETS/(LIABILITIES) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts, determined after appropriate offsetting, are shown in the statements of financial position: Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Deferred tax assets 52,567 43,344 2,455 2,423 Deferred tax liabilities (11,915) (13,804) - - 40,652 29,540 2,455 2,423