100 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 22 INTANGIBLE ASSETS (CONTINUED) Company Software RM’000 Intangible asset under development RM’000 Total RM’000 Net book value 2022 At 1 January 2022 6,625 4,802 11,427 Additions - 3,202 3,202 Amortisation charge (4,782) - (4,782) Reclassification 3,047 (3,047) - At 31 December 2022 4,890 4,957 9,847 2021 At 1 January 2021 10,381 7,826 18,207 Additions 1,450 1,260 2,710 Amortisation charge (9,490) - (9,490) Reclassification 4,284 (4,284) - At 31 December 2021 6,625 4,802 11,427 (a) Impairment test for goodwill Goodwill is allocated to the Group’s cash-generating units (CGU) as follows: Group 2022 RM’000 2021 RM’000 Sugar business operations in Malaysia 576,240 576,240 Palm upstream operations in Malaysia 226,795 226,795 Others 6,037 6,037 809,072 809,072 (i) Sugar business operations in Malaysia The goodwill of RM576,240,000 (2021: RM576,240,000) relates to the acquisition of the sugar business by the Group and is allocated to MSM Malaysia Holdings Berhad (“MSMH”). This represents the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount of the CGU is determined based on VIU calculation using cash flows projections based on financial budgets approved by the Directors covering a five-year period and applying a terminal value growth rate multiple using longer-term sustainable growth rates.
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