Notes tothe financial statements For the financial year ended 31 December 2023 16. Goodwill Group 2023 2022 Rp million Rp million At 1 January 3,084,624 3,211,427 Impairment loss (6,104) (126,803) Balance at 31 December 3,078,520 3,084,624 Goodwill arising from business combination was allocated to the following cash-generating units (“CGU”) for impairment testing: Integrated plantation estates of Lonsum 2,909,757 2,909,757 Plantation estates of PT GS 8,055 8,055 Plantation estates of PT MPI 2,395 2,395 Plantation estates of PT SBN – – Integrated plantation estates of PT CNIS – – Plantation estates of PT LPI 37,230 37,230 Plantation estates and research facility of PT SAIN – – Plantation estates of PT RAP – – Plantation estates of PT JS – – Integrated plantation estates of PT MISP 34,087 34,087 Plantation estates of PT SAL 86,996 86,996 Plantation estates of PT MLI – 6,104 Total 3,078,520 3,084,624 Goodwill was tested for impairment as at 31 October 2023. As at 31 December 2023, there was no significant change in the assumptions used by management that could have significant impact in determining the recoverable value of the goodwill. Management engaged an independent valuer to determine the recoverable amount of the goodwill for Lonsum’s integrated plantation estates. The plantation estates under Lonsum are identified as a single cashgenerating unit (“CGU”) for impairment testing. The recoverable amount of the goodwill allocated to the Lonsum CGU have been determined based on value-in-use calculations. The recoverable amount of other goodwill from other acquisitions were determined internally by management based on FVLCD or value-in-use calculations, using discounted cash flow method. The FVLCD derived is categorised under Level 3 of the fair value hierarchy. Based on the impairment assessment, an impairment loss of Rp6.1 billion (2022: Rp126.8 billion) was recognised to fully write-down the carrying amount of goodwill allocated to a CGU, PT MLI (2022: 5 CGUs - PT SBN, PT CNIS, PT SAIN, PT RAP and PT JS), as the carrying value of the goodwill and net assets for the CGU was in excess of its recoverable amount. 110 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Indofood Agri Resources Ltd
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