16. Investment in Associates (CONT’D.)
(iii) Reconciliation of summarised financial information to net assets of Associates:
2015
2014
RM’000
RM’000
Net assets at 1 January
66,904
64,413
Profit for the year
3,595
7,469
Other comprehensive expense
248
(978)
Dividend paid
(17,500)
(4,000)
Net assets at 31 December
53,247
66,904
Carrying value of Group’s investment in Associates
26,624
33,452
17. Goodwill on consolidation
Goodwill on consolidation arose from the acquisition of two (2) Subsidiaries that are principally involved in oil
palm cultivation and investment property holding. At each reporting date, the recoverable amounts were
determined based on value in use calculation using five-year cash flow projections approved by the Board of
Directors. The pre-tax discount rate used of 10% (2014: 10%) reflects specific risks relating to the industry. No
impairment loss was required as the recoverable amounts were in excess of the carrying amount of the
goodwill.
Based on the sensitivity analysis performed, management believes that no reasonably possible change in base
case key assumptions would cause the carrying value of the Cash Generating Unit (CGU) to exceed its
recoverable amount.
an n ual repo rt 2015
103
