My EG Services Berhad Annual Report 2021

ANNUAL REPORT 2021 205 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 13. GOODWILL ON CONSOLIDATION The Group 2021 2020 RM’000 RM’000 Cost:- At 1 January 18,549 18,549 Acquisition of subsidiaries (Note 40) 1,548 - 20,097 18,549 Accumulated impairment losses (95) (95) At 31 December 20,002 18,454 Goodwill on consolidation is stated at cost and arose from the acquisition of the subsidiaries. The carrying amounts of goodwill allocated to each cash-generating unit are as follows:- The Group 2021 2020 RM’000 RM’000 E-business activities 9,422 9,422 Provision of credit card terminal, hardware, solutions and other related services 5,689 5,689 Other cash-generating units 4,891 3,343 20,002 18,454 The Group has assessed the recoverable amount of goodwill allocated and determined that no additional impairment is required. The recoverable amounts of cash-generating units are determined using the value in use approach, and this is derived from the present value of the future cash flows from the operating segments computed based on the projections of financial budgets approved by management covering a period of 5 years. The key assumptions used in the determination of the recoverable amounts value-in-use are as follows:- Gross Margin Growth Rate Discount Rate 2021 2020 2021 2020 2021 2020 E-business activities 83% 85% 3% - 5% 3% - 5% 14% 12% Provision of credit card terminal, hardware, solutions and other related services 35% - 40% 35% - 40% 15% - 27% 20% - 32% 14% 12%

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