axiata group berhad | annual report 2015
202
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
24. INTANGIBLE ASSETS (CONTINUED)
The remaining amortisation period of acquired telecommunication licenses with allocated spectrum rights range from three (3) years to twenty eight
(28) years [2014: four (4) years to twenty nine (29) years].
The carrying amount of the telecommunication licenses of a subsidiary which have indefinite useful life is RM1,776.5 million (2014: RM1,605.2 million).
Impairment tests for goodwill
The Group undertakes an annual test for impairment of its CGUs identified according to operating segment.
The following CGUs, being the lowest level of asset for which the management monitors the goodwill of the Group:
2015
2014
RM’000
RM’000
Restated
Malaysia
4,031,110
4,031,110
Indonesia
5,292,704
5,092,263
Sri Lanka
269,693
234,706
Cambodia
215,667
175,795
Others
149,078
-
Total
9,958,252
9,533,874
Key assumptions used in the VIU
The recoverable amount of the Malaysia’s, Indonesia’s, Sri Lanka’s and Cambodia’s CGU including goodwill in this test is determined based on VIU
calculation. Malaysia’s, Indonesia’s and Cambodia’s CGU consist of mobile business meanwhile Sri Lanka’s CGUs consist of fixed telecommunication
business (consist of fixed telephone, data and infrastructure) and television business respectively.
The VIU calculation apply a discounted cash flow model using cash flow projections based on forecasts and projections approved by the management
covering:
-
a three (3) year period for the mobile business in Malaysia;
-
a five (5) year period for mobile business in Cambodia and Indonesia, and
-
a ten (10) years period for the fixed telecommunication and television business in Sri Lanka due to the long term nature and intensive capital
required in the initial phase of the business.
These forecasts and projections reflect the management’s expectation of revenue growth, operating costs and margins based on past experience and
future outlook of the CGUs, consistent with internal measurements and monitoring and external sources of information.
