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Notes to the
Financial Statements
As at 31 March 2019
18. Goodwill on consolidation (cont’d.)
(b) Key assumptions used in value-in-use calculations
The following describes each key assumption on which management has based its cash flow projections
to undertake the impairment testing of goodwill:
2019
2018
%
%
Average discount rate
1
10.5
10.5
Terminal growth rate
2
2
2
Assumptions:
1.
Pre-tax discount rate applied to the cash flow projections.
2.
Weighted average growth rate used to extrapolate cash flows beyond the budget period.
(c) Sensitivity analysis
In assessing value-in-use and fair value, management believes that no reasonably possible change in any
of the above key assumptions would cause the carrying value of the goodwill to materially exceed its
recoverable amount.
19. Inventories
Group
2019
2018
RM’000
RM’000
At cost:
Raw materials
18,463
15,472
Printing materials
11,135
8,910
Fertilizer
4,211
815
Oil palm products
10,957
8,432
Work-in-progress
33,133
16,596
Finished goods
20,331
19,210
Consumables
5,232
5,409
103,462
74,844
At net realisable value:
Finished goods
1,207
2,580
104,669
77,424
During the year, the amount of inventories recognised as an expense in cost of sales of the Group was
RM100,934,055 (2018: RM110,627,254).
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
168