Annual Report
2015
|
DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
103
9.
Goodwill – Group (cont’d)
Impairment testing for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the Group’s operating activities (i.e. marine
charter) which represent the lowest level within the Group at which the goodwill is monitored for internal
management purposes.
The recoverable amount of marine charter for the total 17 marine vessels owned was based on its value in
use, determined by future cash flows to be generated by the marine charter. The carrying amount of the
marine charter was determined to be lower than its recoverable amount of RM2.3 billions and hence no
impairment was provided.
Value in use was determined by discounting the future cash flows expected to be generated from the
continuing charter of those marine vessels and was based on the following key assumptions:
• Average marine vessels utilisation rate ranging from 70% - 95%;
• Average daily charter rate ranging from RM29,000 to RM65,000;
• Daily operating costs ranging from RM8,000 to RM13,000;
• Pre-tax discount rate of 10% over the remaining expected useful lives of vessels; and
• Growth rate of 5% in both daily charter rate and costs for every five years.
Impairment loss sensitivity analysis
This analysis is based on utilisation rate and discount rate variances that the Group considered to be
reasonably possible at the end of the reporting period.
The value in use estimates are particularly sensitive in the following areas:
• An increase of 1 percentage point in the discount rate used would have increased the impairment
loss by RM47 million.
• A 5% decrease in utilisation rate used would have increased the impairment loss by RM54 million.
The values assigned to the key assumptions are based on historical data from both external sources and
internal sources as well as management’s assessment of future trends in the industry.
10. Trade and other receivables
Group
Company
2015
2014
2015
2014
Note
RM
RM
RM
RM
Non-current
Non-trade
Loan to a subsidiary
10.1
-
-
57,624,436 100,201,821
Current
Trade
Trade receivables
96,340,897 96,384,846
-
-
Accrued revenue
169,166,664 201,673,303
-
-
265,507,561 298,058,149
-
-
Notes to the
Financial Statements
(cont’d)
