112 CSE GLOBAL LIMITED Impairment testing on goodwill As at 31 December 2023, the Group has goodwill amounting to $77,105,000 which represented 39% of the total noncurrent assets. The Group allocated goodwill to cash generating units (“CGUs”) identified for impairment testing as disclosed in Note 7 to the financial statements. The recoverable amount of each CGU was determined using the value-in-use (“VIU”) calculations, which was based on assumptions in respect of future market and economic conditions such as economic growth, expected inflation rates, demographic developments, future revenue and budgeted gross margins. The audit procedures over management’s impairment tests were significant to our audit because the assessment process was complex and involved significant management judgment on the various assumptions used in the underlying cash flow forecasts. As part of our audit, we obtained an understanding of management’s impairment assessment process and reviewed the robustness of management’s budgeting process by comparing the actual financials versus previously forecasted financials. We assessed and tested the key assumptions used in the impairment assessment such as long-term growth rates and discount rate, and performed sensitivity analysis on reasonably possible changes in these key assumptions to changes in the recoverable amount of each CGU. We also assessed whether assumptions have been determined and applied consistently across the Group, taking into considerations the current economic and market conditions. Our internal valuation specialists assisted us in testing the reasonableness of the discount rate and long term growth rate used in the VIU calculation. We reviewed the results of the impairment assessment performed by management by comparing the carrying values of the CGU to their respective recoverable amounts, and assessed if the carrying amounts exceed the recoverable amounts. Further, we assessed the adequacy of the Group’s disclosures in Note 7 to the financial statements concerning goodwill. Other Information Management is responsible for other information. The other information comprises information included in the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. INDEPENDENT AUDITOR’S REPORT For the financial year ended 31 December 2023
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