249 SECTION 6 FINANCIAL STATEMENTS INTEGRATED ANNUAL REPORT 2025 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 8 INVESTMENT IN SUBSIDIARIES (CONTINUED) Impairment assessment There was no impairment loss deemed necessary to be recognised during the financial year ended 31 December 2025. In the prior financial year ended 31 December 2024, due to the uncertainty of the future economic condition, the investment in certain subsidiaries of the Company was not expected to be recovered. The Group reviewed the recoverable amount of its investment by assessing the individual subsidiary, each of which is a single CGU by itself. The recoverable amount was RM717,000 which is determined based on the net assets approach. The investment in certain subsidiaries were reduced to its recoverable amount. As a result, an impairment loss of RM35,054,000 was recognised in the profit and loss. The movements in the allowance for impairment losses of investment in subsidiaries during the financial year are as follows: Company 2025 RM’000 2024 RM’000 At 1 January 225,149 190,095 Impairment loss recognised - 35,054 Derecognition (487) - At 31 December 224,662 225,149
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