7. INTANGIBLE ASSETS (continued) Development Intellectual Group Goodwill costs Software properties Total RM’000 RM’000 RM’000 RM’000 RM’000 Accumulated amortisation and impairment loss Balance as at 1 September 2021 533 1,452 67 8,827 10,879 Charge for the financial year - 293 15 1,114 1,422 Balance as at 31 August 2022/1 September 2022 533 1,745 82 9,941 12,301 Charge for the financial year - 293 14 1,115 1,422 Written-off (533) - (3) - (536) Balance as at 31 August 2023 - 2,038 93 11,056 13,187 Carrying amount Balance as at 31 August 2022 10,431 1,182 70 8,604 20,287 Balance as at 31 August 2023 10,431 889 44 7,489 18,853 (a) Intangible assets are initially measured at cost. After initial recognition, intangible assets, excluding goodwill, are carried at cost less any accumulated amortisation and any accumulated impairment losses. Goodwill recognised in a business combination is an asset at the acquisition date and is initially measured at cost. After initial recognition, goodwill is measured at cost less accumulated impairment losses. (b) Subsumed within goodwill are the brand names and the synergies expected to be achieved from integrating Sanjung Unggul Sdn. Bhd. (“Sanjung Unggul”) and its subsidiaries (“Sanjung Unggul Group”), Distinct Motion Sdn. Bhd. and its subsidiary (“Distinct Motion Group”) and Pinko Creative Sdn. Bhd. (“Pinko Creative”) into the Group’s existing publishing and applied learning products business. (c) Intellectual properties comprise the publishing rights and production files in relation to educational and learning materials for national schools and institutes of teacher education acquired by the Group as well as the publishing rights and production files in relation to dictionaries, comics, storybooks, educational and learning materials for early education and national-type Chinese schools recognised through the acquisitions of United Publishing House (M) Sdn. Bhd. and Sanjung Unggul by the Company. The intellectual properties are amortised over 15 years as the management estimates that the intellectual properties can be used for commercial activities for a duration of 15 years. Development costs and software are amortised over 10 years. ANNUAL REPORT 2023 SASBADI HOLDINGS BERHAD 100 Financial Statements (continued)
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