Section 8 UEM Edgenta Berhad FINANCIAL STATEMENTS 320 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. INTANGIBLE ASSETS (CONTD.) (a) Goodwill (contd.) The calculation of the value-in-use for the CGUs are most sensitive to the following assumptions: (contd.) (ii) Pre-tax discount rate The discount rates reflect the current market assessment of the risks specific to each CGU. This reflected the management’s best estimate of return on capital employed required in the Group. (iii) Terminal growth rate Terminal growth rates used to extrapolate cash flows beyond the budget period is based on published industry research for each business. Sensitivity to change in assumption Management 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 carrying amounts. (b) Customer contracts and relationships Customer contracts and relationships arose from the acquisition of MEEM, EGT Group and Edgenta UEMS Group are amortised over the range of 3 to 15 years (2022: 5 to 15 years). (c) Software and other development cost Computer 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 10 years (2022: between 3 to 10 years). Other development cost relates to the development of a framework for the application of improved processes, systems and services for servicing expressways.
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