Fraser & Neave Holdings Bhd Annual Report 2020

182 FRASER & NEAVE HOLDINGS BHD 196101000155 (4205-V) Notes to The Financial Statements (Cont’d.) 7. INTANGIBLE ASSETS (CONTINUED) (A) ALLOCATION OF GOODWILL, BRAND AND COMPUTER SOFTWARE Goodwill, brand and computer software have been allocated to the Group’s cash-generating units (“CGUs”) as identified according to country of operation and business segment as follows: Group Goodwill RM’000 Brand RM’000 Computer software RM’000 Total RM’000 At 30 September 2020 Dairy products – Malaysia – – 37 37 – Thailand 999 – – 999 Soft drinks – Malaysia 39,538 – 1,608 41,146 Property/Others – – 3,739 3,739 40,537 – 5,384 45,921 At 30 September 2019 Dairy products – Malaysia – 75,370 64 75,434 – Thailand 999 – – 999 Soft drinks – Malaysia 39,538 – 1,458 40,996 Property/Others – – 3,217 3,217 40,537 75,370 4,739 120,646 (B) KEY ASSUMPTIONS USED IN VALUE IN USE CALCULATIONS (i) Goodwill No impairment loss is required for the goodwill assessed in the current financial year as their recoverable values are in excess of their carrying values. Goodwill is allocated for impairment testing purposes to the individual entity which is also the CGU. The value in use calculations apply a discounted cash flows model using cash flow projections based on financial budgets approved by management covering three-year period. The discount rates applied to the cash flow projections are derived from the cost of capital plus a reasonable risk premium at the date of assessment of the respective CGUs. The terminal growth rate used does not exceed the long-term average growth rate of the respective industry and country in which the entity operates. Cash flows beyond these periods (i.e. three-year) are extrapolated using the estimated growth rate stated in the table below: Terminal growth rate Average annual growth rate Pre-tax discount rate At 30 September 2020 Dairy products 1.0% 10.1% 7.1% Soft drinks 0.0% 11.7% 8.4% At 30 September 2019 Dairy products 1.0% 7.9% 8.8% Soft drinks 0.0% 8.4% 9.8%