244 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2023 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 16. Property, plant and equipment (continued) (f) Impairment of Offshore Support Vessels (“OSVs”) For the financial year ended 31 January 2022, the Group recognised an impairment loss of RM3 million on certain OSVs based on shortfall between the recoverable amounts using the forecasted value-in-use and their carrying values. (g) Impairment of Solar plant under construction Project cost increases mainly attributed to increase in solar module prices and volatility in commodity prices in the current financial year were identified as impairment indicators. Consequently, the Group performed an impairment test and recognised an impairment loss of RM117 million on a solar plant under construction where there was a shortfall between the recoverable amounts determined based on value-in-use and carrying values. The key assumptions used for the value-in-use calculation are as follows: (i) Power generation revenue forecasted over the tenure of the project estimated based on future market outlook and tariff change due to change in law; (ii) Carbon credit revenue estimated based on forward price curve from USD4 to USD10 per credit over 10 years; (iii) Expected commissioning date based on management’s expectation of the timing of grid connection; and (iv) Pre-tax discount rate based on the regional industry weighted average cost of capital (“WACC”) of 10.63%. Sensitivity to changes in key assumptions Impact on impairment loss 2023 Change in WACC (with all other inputs remaining constant) - increase by 0.5% higher by RM22 million - decrease by 0.5% lower by RM22 million Change in carbon credit revenue (with all other inputs remaining constant) - increase by 5% lower by RM5 million - decrease by 5% higher by RM5 million 17. Investment properties Investment properties are stated at fair value, which were determined based on valuations at the reporting date using the market comparison approach. Group 2023 RM million 2022 RM million As at 31 January 15 15
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