22 INTANGIBLE ASSETS (CONTINUED) Company Software RM’000 Intangible asset under development RM’000 Total RM’000 Net book value 2024 At 1 January 2024 3,305 10,403 13,708 Additions 1,093 12,264 13,357 Amortisation charge (1,942) – (1,942) Reclassification 17,687 (17,687) – At 31 December 2024 20,143 4,980 25,123 2023 At 1 January 2023 4,890 4,957 9,847 Additions 487 6,257 6,744 Amortisation charge (2,883) – (2,883) Reclassification 811 (811) – At 31 December 2023 3,305 10,403 13,708 (a) Impairment test for goodwill Goodwill is allocated to the Group’s cash-generating units (CGU) as follows: Group 2024 2023 RM’000 RM’000 Sugar business operations in Malaysia 576,240 576,240 Palm upstream operations in Malaysia 226,795 226,795 803,035 803,035 (i) Sugar business operations in Malaysia The goodwill of RM576,240,000 (2023: RM576,240,000) relates to the acquisition of the sugar business by the Group and is allocated to MSM Malaysia Holdings Berhad (“MSMH”). This represents the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount of the Cash Generating Unit (“CGU”) is determined based on value-in-use (“VIU”) calculations using cash flows projections which is approved by the Board of Directors. The key assumptions of the projection are based on 2025 to 2029 cash flow forecasts approved by the Directors and applying a terminal value multiple using a long term sustainable growth rate. Notes to the Financial Statements For the financial year ended 31 December 2024 105
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