ENRICHING LIVES EXPANDING HORIZONS - Maxis

MAXIS BERHAD
ANNUAL REPORT 2011
153
16 INTANGIBLE ASSETS (CONTINUED)
Impairment testing for cash-generated units containing goodwill
For the purpose of impairment testing, carrying amount of goodwill is allocated to the Group’s cash-generated units (“CGU”)
identified as mobile services.
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 a five-year (2010: five-year) period which reflect management’s
expectations of revenue and EBITDA margin based on past experience and future expectations of business performance.
The key assumptions used in the value in use calculations are as follows:
(a) five years (2010: five years) financial budget period; and
(b) pre-tax discount rate of 14.9% (2010: 14.6%) derived in accordance with the requirements of FRS 136 “Impairment of
Assets” using the Group’s post-tax discount rate of 8.3% (2010: 8.5%).
The key assumptions represent management’s assessment of future trends in the regional mobile telecommunications industry
and are based on both external sources and internal sources.
The discount rates used are pre-tax and reflect specific risks relating to the mobile services.
The forecasts are most sensitive to changes in discount rates in the forecast period. 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 2011 2010
RM’000
RM’000
Non-current assets:
- Investments in subsidiaries 18 35,013,428 35,012,760
- Loans to subsidiaries (a) 1,358,792 1,522,717
Current asset:
- Amount due from a subsidiary (b) 175 0
Current liability:
- Amounts due to subsidiaries (b) (1,155) (963)
36,371,240 36,534,514