KENANGA ANNUAL REPORT 2020

214 5 1 2 3 4 6 7 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS 31 December 2020 17. INTANGIBLE ASSETS (CONT’D.) (f) Client relationships (cont’d.) The Group had performed a fair valuation of the material tangible assets identified, tangible assets acquired and liabilities assumed within Libra Invest, for purpose of a purchase price allocation (“PPA”) in accordance with MFRS 3 Business combinations. The PPA was completed during the current financial year. Certain amounts have been reclassified based on the results of the PPA n the current year’s statement of financial position as follows: Group 2019 RM’000 Reclassification RM’000 2020 RM’000 Goodwill 35,000 (2,972) 32,028 Customer relationships - 2,972 2,972 (g) Impairment test on intangible assets The intangible assets consist of: Goodwill Goodwill has been allocated to the following CGUs: Group 2020 RM’000 2019 RM’000 Stockbroking 147,459 147,459 Investment banking 55,651 55,651 Investment management 40,197 40,644 243,307 243,754 Merchant banking licence - Merchant banking licence which is allocated to the Bank’s stockbroking and investment banking CGUs represents contribution to BNM for a licence to carry on merchant banking business to transform the Bank from a Universal Broker into an Investment Bank. Fund management contracts - Intangible asset relating to fund management contracts arising from the acquisition of one of the Bank’s subsidiary operations is allocated to the unit trust and asset management (investment management) CGU.