162 CSE Global Limited 7. Intangible assets (cont’d) Impairment testing of goodwill (cont’d) Key assumptions used in the value in use calculations are as follows: Forecasted gross margins - Gross margins are based on average values achieved in the year preceding the start of the forecast period. These have been forecasted to remain constant over the budget period. Discount rates - Discount rate used reflecting management’s estimate of the risks and the expected returns after tax from the CGUs. Sensitivity to changes in assumptions With regards to the assessment of value-in-use, management believes that no reasonably possible changes in any of the above key assumptions would cause the carrying value of the unit to materially exceed its recoverable amount. If the management’s estimated discount rate applied to the cash flow projections had been increased by 1.0% to 3.0% (2023: 1.0% to 3.0%), this would result in a 24% to 70% (2023: 11% to 46%) decrease to the recoverable amount of the CGU, which would still be in excess of the carrying amount. 8. Deferred tax assets/(liabilities) Certain deferred tax assets and liabilities have been offset in accordance with the Group’s accounting policy. The following is an analysis of deferred tax balances (after offset) for balance sheet presentation purpose: Group Company 2024 2023 2024 2023 $’000 $’000 $’000 $’000 Deferred tax assets 7,591 7,018 760 540 Deferred tax liabilities (6,965) (6,136) – – 626 882 760 540 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
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