FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 241 21 INTANGIBLE ASSETS (Cont’d.) (b) Impairment test for intangible assets other than goodwill (i) Software and intangible assets under development The Group tests software and intangible assets under development for impairment if there is any objective evidence of impairment. The impairment assessment requires an estimation of the recoverable amount of the CGU to which the asset relates to. The recoverable amount was determined based on fair value less cost to sell calculations. As a result of the impairment assessment, no impairment was recognised as the recoverable amount of the CGU exceeds the carrying amount. (ii) Fatty acids business operation in USA In the prior year, following improvements in the financial performance, a reassessment of the recoverable amount has been undertaken on the fatty acids business operation in USA. The assessment required an estimation of the value in use of the CGU to which the property, plant and equipment and intangible assets in respect of the fatty acids business operation in USA were allocated. This resulted in a reversal of impairment of RM23,878,000. 22 INVESTMENT IN SUBSIDIARIES Company 2013 2012 RM’000 RM’000 At cost less accumulated impairment (i) Malaysian quoted shares: Ordinary shares: At 1 January/31 December 270,026 270,026 (ii) Malaysian unquoted shares: Ordinary shares: At 1 January 283,900 500 Additions 3,536,008 283,400 Transfer from interests in associates (Note 23) 1,567,612 - Conversion of amounts due from subsidiaries into ordinary shares* (Note 28) 32,081 - At 31 December 5,419,601 283,900