NOTES TO THE FINANCIAL STATEMENTS 6. INTANGIBLE ASSETS (CONTINUED) Company Software in progress RM’000 Software RM’000 Total RM’000 Cost At 1 January 2024 788 1,019 1,807 Additions 668 - 668 Reclassification (562) 562 - At 31 December 2024/1 January 2025 894 1,581 2,475 Additions 22 - 22 Reclassification (828) 828 - Adjustments (88) - (88) At 31 December 2025 - 2,409 2,409 Accumulated amortisation At 1 January 2024 - 245 245 Amortisation for the year - 357 357 At 31 December 2024/1 January 2025 - 602 602 Amortisation for the year - 640 640 At 31 December 2025 - 1,242 1,242 Carrying amounts At 1 January 2024 788 774 1,562 At 31 December 2024 894 979 1,873 At 31 December 2025 - 1,167 1,167 (a) Development and production assets consist of the rights and concessions of producing field licences in the Anasuria Cluster amounting to approximately RM510,905,000 (2024: RM866,323,000). During the current financial year, the Group has reviewed the recoverable amount of its development and production assets in the Energy segment due to lower oil price assumptions resulting in lower production forecasts. An impairment loss of approximately RM269,122,000 (2024: Nil), representing the write-down of the development and production assets to its recoverable amount was recognised in “Other operating expenses” line item of the statements of profit or loss and other comprehensive income. The recoverable amount was determined using the fair value less costs of disposal approach. The fair value of the development and production assets was determined using the income approach. In determining the fair value, the management considered factors such as oil price, discount rate and production profile of the assets. The fair value is categorised within level 3 of the fair value hierarchy. (b) Exploration and evaluation assets relate to the exploration and evaluation costs incurred across the various oil and gas fields and clusters in which the Group holds participating interests. As at the end of the reporting period, the Group has not commenced commercial production from these fields, and the assets remain at the exploration and evaluation stage. Additions during the financial year mainly included the exploration and evaluation costs for the Avalon field and Abu Cluster. 161 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
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