KENANGA ANNUAL REPORT 2018

NOTES TO THE FINANCIAL STATEMENTS 31 December 2018 195 ANNUAL REPORT 2018 18. INTANGIBLE ASSETS (CONT’D.) (f) Impairment test on intangible assets (cont’d.) Key assumptions used in value-in-use calculations (cont’d.) (ii) Discount rates The discount rate used is based on the business units’ pre-tax weighted average cost of capital plus an appropriate risk premium at the date of assessment at 8.06% (2017: 8.5%) per annum. (g) Sensitivity to changes in assumptions Management believes that a reasonably possible change in any of the above key assumptions would not cause, in overall basis, the recoverable amounts of the intangible assets to be lower than the carrying values of the CGUs. 19. DEFERRED TAXATION Group Bank 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 At 1 January 2018 10,006 9,841 7,798 7,554 Impact of adopting MFRS 9 101 - 182 - At 1 January 2018, restated 10,107 9,841 7,980 7,554 Recognised in profit or loss (Note 40) (1,668) 965 (2,407) 1,044 Recognised in other comprehensive income (1,907) (800) (1,907) (800) At end of the financial year 6,532 10,006 3,666 7,798 Group Bank 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Deferred tax assets 6,532 10,006 3,666 7,798 Deferred tax liabilities - - - - 6,532 10,006 3,666 7,798 Deferred tax assets and liabilities prior to offsetting are summarised as follows: Group Bank 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Deferred tax assets 12,986 15,953 9,900 13,447 Deferred tax liabilities (6,454) (5,947) (6,234) (5,649) 6,532 10,006 3,666 7,798