FGV Annual Report 2014

21 Intangible Assets (continued) (a) Impairment test for goodwill (continued) (ii) Palm upstream operations in Malaysia (continued) The recoverable amount of the CGU is determined using a fair value less cost to sell calculation (Level 3 fair value computation) using cash flow projections based on financial budgets covering a 25 year period approved by the Directors. The key assumptions are as follows: Financial year ended 31 December 2014 (i) CPO price RM2,450/MT to RM2,630/MT (ii) FFB price RM488/MT to RM524/MT (iii) Estate replanting fixed cost Matured – RM2,580 per hectare based on a 25 year cycle for oil palm Immature – RM6,346 per hectare based on a 25 year cycle for oil palm (iv) Discount rate 9.5% Financial year ended 31 December 2013 (i) CPO price RM2,450/MT to RM2,600/MT (ii) FFB price RM488/MT to RM524/MT (iii) Estate replanting fixed cost Matured – RM3,270 per hectare based on a 25 year cycle for oil palm Immature – RM9,414 per hectare based on a 25 year cycle for oil palm (iv) Discount rate 9.5% The Group’s review includes an impact assessment of changes in key assumptions. Based on the sensitivity analysis performed, the Directors concluded that no reasonable change in any of the base case assumptions would cause the carrying amount of the CGU to exceed the recoverable amount. (iii) Others Included in others is goodwill arising from the acquisition of the production and selling of high grade carbon nanotubes and graphene business and is allocated to FGV Cambridge Nanosystems Limited (previously known as Cambridge Nanosystems Limited) which is not deemed to be material to the Group. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 235