(‘ECL’) allowance for financial assets The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The Group and the Company use judgements in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s and the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. Details of key assumptions and inputs used are disclosed in Note 45. (d) Recognition of fair value adjustments and intangible assets arising from acquisitions During the financial year, the Group acquired Spark Renewables Pty Ltd Group (‘Spark Renewables’), Dullarbtons Limited (‘Dullarbtons’) and Elipsgeen Limited (‘Elipsgeen’), and purchase price allocation exercises were undertaken which involved assumptions in determining the fair value of theidentifiable assets acquired and liabilities assumed. The provisional goodwill arising from these acquisitions amounted to RM491.1 million. Details of the acquisition are set out in Note 48. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 218 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below: (continued) (e) Estimation of income taxes (i) Income tax Income tax is estimated based on the rules governed under the Income Tax Act, 1967. Differences in determining the capital allowances, deductibility of certain expenses and subsequent utilisation of reinvestment allowance may arise during the estimation of the provision for income tax between tax calculated at the statement of financial position date, and the final submission to the tax authority as a result of obtaining further detailed information that may become available subsequent to the statement of financial position date. Where the final tax