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Annual Report 2020
187
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
19. 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:
2020
%
2019
%
Average discount rate
1
11.5
10.5
Terminal growth rate
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.
20. Inventories
Group
2020
RM’000
2019
RM’000
At cost:
Raw materials
21,451
18,463
Printing materials
22,776
11,135
Fertilizer
3,095
4,211
Oil palm products
4,015
10,957
Work-in-progress
8,639
33,133
Finished goods
9,274
20,331
Consumables
4,585
5,232
73,835
103,462
At net realisable value:
Finished goods
1,638
1,207
75,473
104,669
During the year, the amount of inventories recognised as an expense in cost of sales of the Group was RM126,402,598
(2019: RM100,934,055).