268 WASCO BERHAD SECTION 6 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 10 INVESTMENT IN JOINT VENTURES Group 2025 RM’000 2024 RM’000 Unquoted shares 163,895 169,080 Share of post-acquisition results and reserves (138,022) (120,625) 25,873 48,455 Less: Accumulated impairment loss (21,598) (21,799) 4,275 26,656 Share of net assets of joint ventures 4,275 26,656 Recognition and measurement The Group’s interest in joint ventures is 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. On disposal of the investment in joint ventures, the difference between disposal proceeds and the carrying amount of the investment is recognised in profit or loss. During the financial year, the Group’s indirect subsidiary, Wasco AgroTech Sdn. Bhd., disposed of its entire interest in Shinko Industries Malaysia Sdn. Bhd. (formerly known as Shinko Wasco Turbine Sdn. Bhd.) to an external party for RM4,528,000. The carrying amount of the investment in the consolidated financial statements was RM4,546,000, resulting in a loss on disposal of RM18,000 recognised in the consolidated statement of profit or loss. Impairment assessment The carrying amount of investment in joint ventures was compared to the 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 2025 and 31 December 2024, there was no impairment loss deemed necessary to be recognised.
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