98 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 23 INTANGIBLE ASSETS (CONTINUED) (a) Impairment test for goodwill (continued) (i) Sugar business operations in Malaysia (continued) The key assumptions used for the CGU’s VIU calculation are: 2021 2020 RM’000 RM’000 Selling price, RM per metric tonne (“MT”) 2,690 – 2,800 1,866 – 2,690 Raw sugar price, US cents per pound 15.0 – 20.3 13.2 – 14.5 Sales volume, MT’000 1,088 – 1,181 1,121 – 1,308 Landed cost, RM/MT 2.9 – 15.0 2.9 – 15.0 Natural gas price, RM/MMBtu 30.0 – 33.1 30.0 – 34.9 Terminal value growth rate 2% 2% Discount rate 9% – 10% 9% – 10% Exchange rate (RM – USD) RM4.25/USD RM4.40/USD 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. 2021 Key Assumptions Sensitivity VIU Higher/(Lower) by RM’000 Landed Cost Increase by RM15/MT (105,500) Domestic sales volume Reduce by 30% (42,900) Fine syrup sales volume Reduce by 24kMT – 29kMT (50,200) Natural gas Increase by 10% (38,500) All changes taken in isolation, a reduction in domestic selling price by RM297/MT, increase in raw sugar price by USD1.2 cents/lbs, reduction in terminal value growth rate by 4.6%, increase in discount rate by 1.8%, decrease in domestic sales volume by 18.9% and increase in exchange rate by RM0.33/USD would result in the recoverable amount being equal to the carrying amount.
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