FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 231 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 EXAMINED OUR NUMBERS 21 INTANGIBLE ASSETS (CONTINUED) (a) Impairment test for goodwill (continued) (i) Sugar business operations in Malaysia (continued) 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. 31.12.2018 Key assumptions Sensitivity VIU lower by RM’000 Selling price Reduce by RM50 per metric tonne 323,000 Raw sugar price Increase in raw sugar prices by 1 cent per pounds 674,000 Sales volume Reduce by 5% 246,000 Discount rate Increase by 1% 298,000 A reduction in domestic selling price of RM47/MT and increase in raw sugar price by 0.5 cents per pounds would, all changes taken in isolation, result in the recoverable amount being equal to the carrying amount. 31.12.2017 Key assumptions Sensitivity VIU lower by RM’000 Selling price Reduce by RM50 per metric tonne 668,000 Raw sugar price Increase in raw sugar prices by 1 cent per pounds 636,000 Sales volume Reduce by 5% 628,000 Discount rate Increase by 1% 320,000 A reduction in selling price of RM7.50/MT, increase in raw sugar price by 0.2 cents per pounds and reduction in sales volume by 2% would, all changes taken in isolation, result in the recoverable amount being equal to the carrying amount.