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KUMPULAN FIMA BERHAD
(11817-V) |
Annual Report
2016
18. GOODWILL ON CONSOLIDATION (CONT’D)
(a) Impairment Tests for Goodwill
Goodwill has been allocated to the Group’s cash generating units identified according to business
segment as follows:
Bulking Plantation
Total
RM’000
RM’000
RM’000
Restated
Restated
As at 31 March 2016/2015
12,200
510
12,710
(b) Key Assumptions used in Value-In-Use Calculations
The following describes each key assumption on which management has based its cash flow projections
to undertake the impairment testing of goodwill:
2016
2015
%
%
Discount rate
1
5.42 - 6.42 4.70 - 5.65
Terminal growth rate
2
5
5
Assumptions:
1.
Pre-tax discount rate applied to the cash flow projections
2.
Weighted average growth rate used to extrapolate cash flows beyond the budget period
(c) Sensitivity analysis
In assessing value-in-use and fair value, management believes that no reasonably possible change in
any of the above key assumptions would cause the carrying value of the goodwill to materially exceed
its recoverable amount.
19. INVENTORIES
Group
2016
2015
RM’000
RM’000
At cost:
Raw materials
16,860
8,969
Printing materials
18,486
13,212
Fertilizer
282
1,706
Oil palm products
8,232
7,927
Work-in-progress
19,910
52,954
Finished goods
11,635
26,156
Consumables
6,846
16,888
82,251
127,812
At net realisable value:
Finished goods
8,556
-
90,807
127,812
During the year, the amount of inventories recognised as an expense in cost of sales of the Group was
RM200,450,109 (2015: RM233,197,000).