19 IMPAIRMENT OF INTANGIBLE ASSETS
Impairment tests for goodwill and software expenditure under development
Group
2015
RM’000
2014
RM’000
Malaysia*:
– goodwill
177,913
177,913
– software expenditure under development
31,144
27,655
Indonesia
1,622
1,622
Aged care facility
16,356
16,356
227,035
223,546
* The impairment testing for the goodwill allocated to Malaysian includes the software expenditure under development, as
this represents software projects to develop new information processing and clinical systems for use in the hospitals.
Recoverable amount based on fair value less costs to sell
The recoverable amount of the CGU is determined based on fair value less cost to sell calculation (level 3 fair value
hierarchy). These calculations use cash flow projections based on financial budgets approved by the Directors covering a
five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below.
284
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
