FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 239 21 INTANGIBLE ASSETS (Cont’d.) Company Software RM’000 2013 At 1 January 2013 5,749 Additions 1,824 Amortisation charge (1,608) At 31 December 2013 5,965 2012 At 1 January 2012 - Additions 6,217 Amortisation charge (468) At 31 December 2012 5,749 Expected remaining useful lives (years) - 31 December 2013 4 - 31 December 2012 5 (a) Impairment test for goodwill Goodwill is allocated to the Group’s cash-generating units (CGU) as follows: Group 2013 2012 RM’000 RM’000 Sugar business operations in Seberang Prai, Malaysia 576,240 576,240 Plantation estates in Lahad Datu, Sabah 127,238 - 703,478 576,240 (i) Sugar business operations in Seberang Prai, Malaysia The goodwill relates to the acquisition of the sugar business by the Group and is allocated to Malayan Sugar Manufacturing Company Berhad. This represents the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount of the CGU is determined based on a fair value less cost to sell basis using cash flows projections based on financial budgets approved by the Directors covering a three-year period and applying a terminal value growth rate multiple using longer-term sustainable growth rates.