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SUSTAINABILITY JOURNEY HOW WE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 337

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

19 INTANGIBLE ASSETS (CONTINUED)
Goodwill

The goodwill relates to the acquisition of the sugar business and is allocated to the sugar segment. This represents the lowest
level at which goodwill is monitored for internal management purposes.
The recoverable amount of the Cash Generating Unit (“CGU”) is determined based on value-in-use (“VIU”) calculations using
cash flows projections based on financial budgets approved by the Directors covering an eight-year period and applying a
terminal value multiple using a long term sustainable growth rate. An extended forecast period of eight years is used to show
the full impact following the rationalisation plan within the Group.
The recoverable amount calculated based on VIU exceeded the carrying value by RM646 million (2020: RM257 million).
The key assumptions used for the CGU’s value in use calculation are:
Key assumptions 2021 2020

Selling price, RM/MT 2,690 - 2,800 1,866 - 2,690
Raw sugar price, US cents/lbs 15.0 - 20.3 13.2 - 15.0
Sales volume, MT’000 1,088 - 1,181 1,148 - 1,340
Landed cost, RM/MT 2.9 - 15.0 2.9 - 15.0
Natural gas, RM/MMBtu 30.0 - 33.1 30.0 - 34.9
Terminal value growth rate, % 2% 2%
Discount rate, % 9% - 10% 11% - 12%
Exchange rate (RM – USD) RM4.25/USD RM4.40/USD