ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

NOTES TO THE
FINANCIAL STATEMENTS (CONT’D)
4. Intangible asset
Other
Goodwill intangible assets Total
Group RM’000 RM’000 RM’000
Cost
At 1 January 2007 4,233 – 4,233
Acquisition of minority interest 2,439 – 2,439
At 31 December 2007/At 1 January 2008 6,672 – 6,672
Acquisitions through business combinations 946,675 894,368 1,841,043
Additions – 6,856 6,856
Effect of movements in exchange rates (25,179) (21,606) (46,785)
At 31 December 2008 928,168 879,618 1,807,786
Amortisation
At 1 January 2007/31 December 2007/
1 January 2008 – – –
Amortisation for the year – (33,670) (33,670)
Effect of movements in exchange rates – (142) (142)
At 31 December 2008 – (33,812) (33,812)
Carrying amounts
At 1 January 2007 4,233 – 4,233
At 31 December 2007/1 January 2008 6,672 – 6,672
At 31 December 2008 928,168 845,806 1,773,974
The goodwill recognised on the acquisition is attributable mainly to the skills and technical talent of the acquired
business’s work force and the synergies expected to be achieved from integrating the companies into the
Group’s existing oil, gas and petrochemical industry.
4.1 Other intangible assets
Other intangible assets comprise mainly technology including patents, customers related intangibles
including customer contracts and supply agreement and marketing related intangibles including
tradenames. These intangible assets with finite useful lives are amortised over their useful lives ranging
from 1 to 20 years while the others with infinite useful lives are tested for impairment annually.
4.2 Amortisation and impairment charge
Amortisation of technology and customers related intangible assets is included in other operating expenses
in the income statement.
KNM GROUP BERHAD
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ANNUAL REPORT 2008