FGV Audited Financial Statements 2020

5 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS (continued) (ii) Goodwill relating to sugar business and palm upstream operations in Malaysia The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash generating units (“CGU”) to which the goodwill is allocated. Estimating the recoverable amount requires management to make an estimate of the expected future cash flows from the CGUs and also to choose a suitable discount rate in order to calculate the present value of those cash flows. The recoverable amounts of CGUs were determined based on the higher of fair value less cost to sell or value in use (“VIU”) calculations. The fair value less cost to sell or VIU is the net present value of the projected future cash flows derived from the CGU discounted at an appropriate discount rate. Projected cash flows are estimates made based on historical and industry trends, general market and economic conditions and other available information. As a result of the impairment assessment, the Group did not recognise any impairment loss (2019: Nil) for goodwill relating to sugar business and palm upstream operations in Malaysia during the financial year. The key assumptions and the sensitivity analysis are as disclosed in Note 23(a) to the financial statements. (iii) Impairment of non-financial assets Group The Group tests its non-financial assets for impairment if there is any objective evidence of impairment. Management have assessed that certain non-financial assets may be potentially impaired or the existing impairment may be reversed. The recoverable amounts of these assets were determined based on the higher of fair value less cost to sell or VIU calculations. The fair value less cost to sell or VIU is the net present value of the projected future cash flows derived from the CGU discounted at an appropriate discount rate. Projected cash flows are estimates made based on historical and industry trends, general market and economic conditions and other available information. As a result of the assessment, the Group has recognised a net impairment of RM242,074,000 (2019: RM168,262,000) on certain property, plant and equipment and right-of-use assets. The key assumptions and the sensitivity analysis are as disclosed in Note 20 to the financial statements. 6 REVENUE The Group and Company derive the following types of revenue: Group 2020 RM’000 2019 RM’000 Revenue from contracts with customers 14,050,706 13,213,947 Revenue from other sources 25,006 45,065 14,075,712 13,259,012 69 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020