10 REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters (continued) Key audit matters How our audit addressed the key audit matters Impairment assessments of non-financial assets with impairment indicators Management performed impairment assessments of the non-financial assets of the Group and the Company, which had impairment indicators. As a result, the following impairment losses were recognised during the financial year ended 31 December 2023: • Net impairment loss of RM119.5 million at the Group level for property, plant and equipment, right-of-use assets and intangible assets. • Impairment loss of RM15.0 million at the Company level in respect of the Company’s cost of investment in subsidiaries. We focused on this area as the recoverable amounts of the non-financial assets are determined based on discounted cash flows projections, which require judgment on the part of management on the future financial performance and the business plan of those businesses. These are disclosed in Notes 19, 20, 22 and 23 to the financial statements. Refer to Note 3(o) in the material accounting policies, Note 5(iii) in the critical accounting estimates and judgments and Notes 19, 20, 22 and 23 to the financial statements. We have performed the following audit procedures: • We assessed the reliability of management’s projections through the comparison of actual past financial performances against previous forecasted results; • We assessed the reasonableness of the key assumptions, which were used by management in developing the discounted cash flows projections, by comparing against historical data and industry trends; • We examined the sensitivity analysis performed by management on the relevant key assumptions for the respective businesses to evaluate the impact on the impairment assessment; and • We assessed the adequacy and reasonableness of the disclosures in the financial statements. Based on our procedures, we noted no significant exceptions. Information other than the financial statements and auditors’ report thereon The Directors of the Company are responsible for the other information. The other information comprises the Directors’ Report, Chairman’s Statement and Group Chief Executive Officer’s Review, Management Discussion and Analysis and Statement on Risk Management and Internal Control , which we obtained prior to the date of this auditors’ report, and other sections of the 2023 Annual Integrated Report, which is expected to be made available to us after that date. Other information does not include the financial statements of the Group and of the Company and our auditors’ report thereon. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF FGV HOLDINGS BERHAD (Incorporated in Malaysia) Registration No. 200701042133 (800165-P)
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