10) GOODWILL ON CONSOLIDATION
GROUP
2014
2013
RM
RM
Balance as at beginning and end of year
2,570,627 2,570,627
Key Assumptions Used in Value-In-Use Calculations
Goodwill is in respect of acquisitions of subsidiaries by the Group and has been allocated to its
cash-generating unit (CGU) where the recoverable amount of CGU has been based on value-
in-use calculations using five year financial projections. No revenue and expenses growth were
projected from sixth year to perpetuity.
The discount rate based on the Group’s weighted average cost of capital was applied in
determining the recoverable amount of the respective CGU.
Sensitivity to changes in assumptions
Management believes that no reasonable possible changes in any of the key assumptions above
would cause the carrying values of the CGUs to materially exceed their recoverable amounts.
11) TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAID EXPENSES
Trade receivables comprise amounts receivable for services rendered. The credit period granted
on services rendered is 30 days. Other credit terms are assessed and approved on a case-by-
case basis.
GROUP
2014
2013
RM
RM
Trade receivables
3,823,370 10,181,986
Less: Allowance for doubtful debts
(92,123)
(92,123)
Net
3,731,247 10,089,863
Asia Media Group Berhad Annual Report 2014
104
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
