when incurred. Goodwill RM’million Rights to build RM’million Project development portfolio RM’million Total RM’million 2023 Group As at the beginning of the financial year 421.4 172.2 0 593.6 Acquisition of subsidiaries* 491.1 0 429.3 920.4 Impairment (123.6) 0 0 (123.6) Effect of changes in foreign currencies 35.2 17.5 17.1 69.8 Transfer to PPE# 0 (189.7) 0 (189.7) As at the end of the financial year 824.1 0 446.4 1,270.5 * Goodwill arising from the acquisition of Spark Renewables, Dullarbtons and Elipsgeen (Note 48). Project development portfolio arising from the acquisition of Spark Renewables (Note 48). # Transfer to PPE upon commencement of the project. Goodwill RM’million Rights to build RM’million Total RM’million 2022 Group As at the beginning of the financial year 438.4 0 438.4 Acquisition of a subsidiary*17.9 0 17.9 Additions# 0 168.6 168.6 Impairment (22.7) 0 (22.7) Effect of changes in foreign currency (12.2) 3.6 (8.6) As at the end of the financial year 421.4 172.2 593.6 * Goodwill arising from the acquisition of CEI UK (Note 48). # Acquisition of rights to build for a portfolio of 101.7megawatts (‘MW’) solar capacity and 65MW battery storage in United 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.