161 Annual Report 2024 7. Intangible assets (cont’d) Impairment testing of goodwill Goodwill acquired through business combinations have been allocated to the Group’s cash-generating units (CGU) identified according to each individual business unit for impairment testing. The carrying amounts of goodwill less accumulated impairment losses are allocated as follows: Group 2024 2023 $’000 $’000 CSE W-Industries, Inc. – Gulf Coast Power & Control of Louisiana, LLC 1,610 1,558 – Volta, LLC 18,189 17,606 – W-Industries of Texas, LLC 7,981 7,725 CSE-Global (Australia) Pty Ltd – Uniserve Group 4,671 4,983 – CSE New Zealand Ltd 978 1,068 – Telecommunications business 16,917 15,313 CSE-Global (Asia) Pte Ltd – CSE-EIS (Malaysia) Sdn Bhd 486 486 CSE Crosscom UK group – Chatterbox Ltd 2,493 2,465 – Zycomm Electronics Ltd 32 32 – Radiotek Ltd 1,210 1,196 – DTS.Solutions (U.K.) Ltd 480 474 CSE Technologies Pte Ltd – Logic Wireless 12,314 13,306 CSE Crosscom USA Inc – Radio One 14,354 10,496 – RFC Wireless, Inc 7,230 − Grid Communications Pte Ltd 397 397 Carlton Staffing 1,088 − 90,430 77,105 The recoverable amounts of the CGUs are determined based on value-in-use (“VIU”) calculations. The VIU calculations use 5-year cash flow projections based on financial forecasts with terminal value approved by management. Management has considered and determined the factors applied in these financial forecasts which include forecasted gross margins and average growth rates. The forecasted gross margins are based on past performance and its expectation of market development. Average growth rates of 0.5% to 15% (2023: 0.5% to 10%) used are consistent with forecasts based on existing contracts and book orders. The discount rate applied are assumed at 5.8% (2023: 9.1%) for VIU calculations, which the Group has assessed as its weighted average cost of capital. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
RkJQdWJsaXNoZXIy NTM2MDQ5