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FINANCIAL STATEMENTS
Axiata Group Berhad | Annual Report 2016
209
25. INTANGIBLE ASSETS (CONTINUED)
Impairment tests for goodwill (continued)
Key assumptions used (continued)
Pre-tax discount rate applied to the cash flow forecasts are derived from the pre-tax CGU at the date of the assessment of the respective CGU that
reflects the risk of the CGU.
The following assumptions have been applied in the VIU and FVLCS calculations:
FVLCS
VIU
Nepal
Cambodia
Malaysia
Sri Lanka
Indonesia
2016
2016
2015
2016
2015
2016
2015
2016
2015
Pre-tax adjusted
discount rate
17.3% 19.4%
19.0%
11.9%
12.5%
14.7%
15.2%
12.0%
13.1%
Terminal growth rate
4.0%
2.0%
2.0%
0%
0%
3.0%
3.0%
3.0%
3.0%
Revenue growth rate
2.1% to
4.2%
over
3 years
5.3% to
5.6%
over
5 years
5.2% to
6.7%
over
5 years
2.0% to
3.9%
over
3 years
3.0% to
4.6%
over 3
years
7.0% to
25.3%
over
10 years
4.5% to
11.0%
over
10 years
6.7% to
7.1%
over
5 years
6.8% to
7.4%
over
5 years
Based on the above test, the Malaysia, Indonesia, Sri Lanka, Nepal and Cambodia CGUs’ goodwill are not impaired as the recoverable amounts
exceeds the carrying amounts included in the financial statements.
The Group’s review includes an impact assessment of changes in key assumptions. Based on the sensitivity analysis performed, the Directors
concluded that no reasonable change in the base case assumptions would cause the carrying amounts of the CGUs to exceed its recoverable
amounts.
26. PROPERTY, PLANT AND EQUIPMENT
Note
Land
RM’000
Buildings
RM’000
Telecom-
munication
network
equipment
RM’000
Movable
plant and
equipment
RM’000
Computer
support
systems
RM’000
Capital
work-
in progress
RM’000
Total
RM’000
Group
Net book value
At 1 January 2016
533,917 206,828 18,941,971 548,635 690,716 2,211,577 23,133,644
Addition
-
28,925 5,767,792 143,289 346,797 (145,584) 6,141,219
Acquisition of subsidiaries
36,742
19,813 1,761,716
5,047
-
208,662 2,031,980
Disposal
-
(7)
(63,980)
(28,437)
58
(20,061)
(112,427)
Written off
7(a)
-
-
(772)
(1,413)
(9)
(6,722)
(8,916)
Depreciation
7(a)
(93,873)
(31,479) (4,315,390)
(134,797)
(388,708)
- (4,964,247)
Impairment
7(a)
-
-
(7,077)
(2,474)
(1,014)
(51,801)
(62,366)
Sale and lease back assets
-
-
336,488
-
-
-
336,488
Currency translation differences
32,045
5,686 819,699
3,495
10,243
99,588 970,756
At 31 December 2016
508,831 229,766 23,240,447 533,345 658,083 2,295,659 27,466,131