FGV Audited Financial Statements 2019

118 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 23 INTANGIBLE ASSETS (CONTINUED) (a) Impairment test for goodwill (continued) (i) Sugar business operations in Malaysia (continued) Other than as disclosed below, there is no reasonably possible change in any of the above key assumptions, which would cause the carrying value of the CGU to exceed its recoverable amount. 2019 Key assumptions Sensitivity VIU lower by RM’000 Selling price Reduce by RM50 per metric tonne 262,359 Raw sugar price Increase by 0.5 cent per pound 340,519 Sales volume Reduce by 5% 197,322 Terminal value growth rate Reduce by 1% 222,855 Discount rate Increase by 1% 308,443 Exchange rate Increase by RM0.20 per USD 532,854 A reduction in domestic selling price of RM36/MT and increase in raw sugar price by 0.2 cents per pound, reduce in terminal value growth rate by 0.6%, increase in discount rate by 0.4%, decrease in domestic sales volume by 3.8% and increase in exchange rate by RM0.06 per USD would, all changes taken in isolation, result in the recoverable amount being equal to the carrying amount. 2018 Key assumptions Sensitivity VIU lower by RM’000 Selling price Reduce by RM50 per metric tonne 323,000 Raw sugar price Increase by 1 cent per pound 674,000 Sales volume Reduce by 5% 246,000 Discount rate Increase by 1% 298,000 A reduction in domestic selling price of RM47/MT and increase in raw sugar price by 0.5 cents per pound would, all changes taken in isolation, result in the recoverable amount being equal to the carrying amount. The above sensitivity analysis is based on the movement of individual key assumptions while holding all other assumptions constant.