2020 UEM Edgenta Annual Report

15. INTANGIBLE ASSETS (CONTD.) a. Goodwill Impairment testing of goodwill Goodwill is allocated and monitored by management across the following cash generating units (“CGU”): RM’000 2020 2019 Asset consultancy: Opus Group Berhad 38,636 38,636 Healthcare support: Edgenta Mediserve Sdn. Bhd. (“EMS”) 26,982 26,982 Edgenta UEMS Group: - Malaysia 63,614 63,647 - Singapore 268,620 268,762 - Taiwan 10,714 10,719 Property and Facility Solutions: EGT Group 49,600 49,600 Infrastructure services: Edgenta PROPEL Berhad 76,372 76,372 534,538 534,718 G oodwill is tested for impairment on an annual basis by comparing the carrying amount of the CGU with their respective recoverable amounts, which is based on value-in-use. The value-in-use is determined by discounting future cash flows over a period of five years including a terminal value. The future cash flows are based on management’s future business plan, which is the best estimate of immediate future performance. F or EMS, the value-in-use is determined by discounting cash flows for a period of 14 years assuming an extension of 10 years concession period with no terminal value. ANNUAL REPORT 2020 243 1 2 3 4 5 6 7 8