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108
SapuraCrest Petroleum Berhad
Annual Report 2010
noteS to the FinAnCiAl StAtementS
31 January 2010
14. intAngiBle ASSetS (Cont’D)
The following describes each key assumption on which management has based its cash flow projections to undertake impairment
testing of goodwill:
(i) Budgeted gross margin
The basis used to determine the value assigned to the budgeted gross margin is the average margins achieved in the year
immediately before the budgeted year increased for expected efficiency improvements.
(ii) Discount rate
The discount rates used are pre-tax and reflect specific risks relating to the relevant segments.
(iii) Growth rate
The basis used is based on past historical trend and management experience on the business.
Sensitivity to changes in assumptions
With regard to the assessment of value-in-use of the Marine Services and Operation and Maintenance and Marine Services,
management believes that no reasonably possible change in any of the above key assumptions would cause the carrying values of
the units to materially exceed their recoverable amounts.
15. inveStmentS in SuBSiDiARieS
Company
2010 2009
Rm’000 Rm’000
Unquoted shares, at cost 239,954 239,954
Share options granted under ESOS 1,167 1,167
Less: Accumulated impairment losses (6,878) (6,878)
The details of the subsidiaries are set out in Note 37.
16. inveStmentS in ASSoCiAteS
234,243 234,243
group Company
2010 2009 2010 2009
Rm’000 Rm’000 Rm’000 Rm’000
Unquoted shares, at cost 521 1,321 — 800
Share of post-acquisition reserves 5,998 9,117 — —
6,519 10,438 — 800