WASCO BERHAD 234 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2024 10 INVESTMENT IN JOINT VENTURES Group 2024 RM’000 2023 RM’000 Unquoted shares 169,080 170,625 Share of post-acquisition results and reserves (120,625) (128,393) 48,455 42,232 Less: Accumulated impairment loss (21,799) (22,052) 26,656 20,180 Share of net assets of joint ventures 26,656 20,180 Recognition and measurement The Group’s interest in joint ventures are accounted for in the consolidated financial statements using the equity method of accounting after initially being recognised as cost. Equity accounting is discontinued when the carrying amount of the investment in joint ventures (including any long term interests that, in substance, form part of the Group’s net investment in joint venture) reaches zero, unless the Group has incurred obligation or made payment on behalf of the joint venture. Impairment assessment The carrying amount of investments in joint ventures and was compared to their recoverable amount. The recoverable amount was determined using their value-in-use. The value-in-use is the net present value of the projected future cash flows to be derived from that asset. Projected future cash flows are calculated based on historical sector and industry trends, general market and economic conditions, changes in technology and other available information. Due to the uncertainty of the future economic condition, management developed the base case and worst case scenario of cash flow projections. Probabilities of occurrence were assigned to each scenario to arrive at a single set of cash flow projection. The assumptions used in both scenarios and the probabilities of occurrence assigned required management’s judgement. Unquoted shares – Alam-PE Holdings (L) Inc. For the financial year ended 31 December 2024 and 31 December 2023, there were no impairment loss deemed necessary to be recognised.
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