Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 78

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 5
Chunk 78
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 initially measured at cost. After initial recognition, goodwill is measured at cost
less accumulated impairment losses.

For the purpose of impairment testing, goodwill
impairment is assessed at least annually and whenever there are indicator of impairment. Goodwill is allocated to the Company’s
cash generating units (CGUs) which represent the lowest level within the Company at which the goodwill is monitored for internal management
purposes.

The recoverable amounts of the CGUs have been
determined based on value in use (“ VIU”) calculations. The VIU is calculated using the pre-tax cash flow projections based
on financial budgets approved by management covering a five-year period. VIU was determined by discounting the future cash flow generated
from the business operation of the CGUs.

The calculations of VIU for the CGUs are most sensitive to the following
assumptions:

  (i)      Revenue growth rates  

The forecasted growth rates are determined based
on past performance of the CGUs.

  (ii)      Expenses growth rate  

Expenses are projected at annual increase of approximately
3.0% per annum.

  (iii)      Pre-tax discount rates  

Pre-tax discount rate of 11.34% to 13.20% (2024:
4.09%) per annum has been applied in determining the recoverable amount of the CGUs.

  (iv)      Profit margin  

Profit margins are projected based on the historical
profit margin achieved or predetermined profit margin for the CGUs.

With regards to the assessment of the value-in-use
of the CGU relating to goodwill, no impairment loss was recognized for the intangible assets on consolidation for current financial year
as its recoverable value was in excess of its carrying values.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES