2020 UEM Edgenta Annual Report

15. INTANGIBLE ASSETS (CONTD.) a. Goodwill (contd.) Sensitivity to change in assumption M anagement believes that no reasonable possible change in any of the above key assumptions would cause the recoverable amount of each of the CGUs to be materially lower than their respective amount, other than the Edgenta UEMS - Malaysia CGU, as follows: Decrease in profit before tax RM‘000 2020 2019 Increase in 1% of discount rate 3,623 6,614 Decrease in 1% of terminal growth rate 689 4,585 b. C ustomer contracts and relationships C ustomer contracts and relationships arose from the acquisition of EGT Group and Edgenta UEMS Group in 2016 and are amortised over the range of 5 to 15 years. c. Software and other development cost C omputer software represents licenses and other software assets that are not an integral part of property, plant and equipment assets. Software assets are recorded at cost and have finite useful life based on the term of the license or other contractual basis. The cost is amortised over the estimated asset’s useful life of 3 to 5 years. O ther development cost relates to the development of a framework for the application of improved processes, systems and services for servicing expressways. ANNUAL REPORT 2020 245 1 2 3 4 5 6 7 8