Kingdom. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 238 10 INTANGIBLE ASSETS (CONTINUED) Group 2023 RM’million 2022 RM’million Classification of goodwill by countries Malaysia 211.0 211.0 Foreign: - United Kingdom 108.7 210.4 - Australia 345.7 0 - Republic of Ireland 158.7 0 824.1 421.4 Impairment assessment for goodwill The carrying value of goodwill is allocated to the Group’s CGUs. The recoverable amount of the CGU including goodwill, is determined based on its VIU. This VIU calculation applies a discounted cash flow model using cash flow projections based on forecast approved by management. The forecasts reflect management’s expectations of revenue growth, operating costs and margins for the CGUs based on current assessment of market share, expectations of market and industry growth. Thediscount rate applied to the cash flow forecast refers to the industry’s pre-tax Weighted Average Cost of Capital (‘WACC’). (a) Goodwill relating to operations in Malaysia The discounted cash flow model used cash flow projections which covered a five-year period and cash flows beyond the projection years are extrapolated using an estimated terminal growth rate. The following key assumptions have been applied in the VIU calculation: 2023 % 2022 % Revenue growth rate 2.1 1.8 Pre-tax discount rate 8.8 8.1 Terminal growth rate 1.9 1.8 Based on the Group’s assessment, no impairment losses were required as at 31 December 2023 as the recoverable amount exceeded the carrying amount. The Group’s review includes an impact assessment of changes in key assumptions used. Based on the sensitivity analysis performed, it was concluded that no reasonable change in the base case assumptions would cause the carrying amount of the CGU to exceed its recoverable amount. (b) Goodwill relating to operations in the United Kingdom The Group tests whether the goodwill has suffered any impairment on an annual basis. The Group has determined the recoverable amount of foreign CGU by assessing