Maxis Berhad
Annual Report 2015
page
120
Notes to the Financial Statements
31 December 2015
16 INTANGIBLE ASSETS (CONTINUED)
Impairment testing for CGU containing goodwill and telecommunications licenses with allocated spectrum rights
For the purpose of impairment testing, carrying amounts of goodwill and telecommunications licenses with allocated spectrum rights are allocated
to the integrated telecommunication services CGU.
The recoverable amount of a CGU is determined based on value in use calculations. These calculations use pre-tax cash flow projections based
on internally approved financial budgets covering five years (2014: five years) period.
The key assumptions used in the value in use calculations are as follows:
(a) compounded revenue and EBITDA annual growth rates of 2.0% (2014: 1.9%) and 1.8% (2014: 2.3%) respectively for five years (2014: five
years) financial budget period which reflect management’s expectations based on past experience and future expectations of business
performance;
(b) post-tax discount rate of 7.3% (2014: 8.0%). In accordance with the requirements of MFRS 136 “Impairment of Assets”, this translates into
pre-tax discount rate of 13.3% (2014: 15.2%). The discount rates used reflect specific risks relating to the integrated telecommunication
services; and
(c) terminal growth rate of 2.0% (2014: 2.0%) represents the growth rate applied to extrapolate pre-tax cash flow beyond the five year (2014:
five year) financial budget period. This growth rate is based on management’s assessment of future trends in the mobile telecommunications
industry and based on both external and internal sources.
The key assumptions in the forecasts that are most likely to be sensitive are changes in discount rates during the forecast period. However, based
on the sensitivity analysis performed, the Directors have concluded that any variation of 10% in the base case assumptions would not cause the
carrying amount of the CGU to exceed its recoverable amount.
17 INTEREST IN SUBSIDIARIES
Company
Note
2015
RM’000
2014
RM’000
Non-current assets:
- investments in subsidiaries
18
35,045,523
35,022,142
- loan to a subsidiary
(a)
-
1,205,763
Current assets:
- amounts due from subsidiaries
(b)
74
81
- loans to subsidiaries
(a)
636,795
-
Current liabilities:
- amount due to a subsidiary
(b)
(823)
(1,160)
- loans from a subsidiary
(a)
-
(400,000)
35,681,569
35,826,826
