NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024 3. Significant accounting estimates and judgements (cont’d) 3.2 Key sources of estimation uncertainty (cont’d) (b) Goodwill impairment (cont’d) Determining the fair values of biological assets, property, plant and equipment, and other non-current assets of the acquirees at the date of business combination, requires the determination of future cash flows expected to be generated from the continued use and ultimate disposition of such assets, requires the Group to make estimates and assumptions that can materially affect its consolidated financial information. Future events could cause the Group to conclude that the assets are impaired. The preparation of estimated future cash flows involves significant estimations. While the Group believes that its assumptions are appropriate and reasonable, significant changes in its assumptions may materially affect its assessment of recoverable amounts and may lead to impairment charge in the future. Impairment review is performed when certain impairment indication is present. In the case of goodwill, such assets are subject to annual impairment test and whenever there is an indication that such asset may be impaired. Management has to use its judgement in estimating the recoverable amount. The carrying amount of the Group’s goodwill as at 31 December 2024 is Rp3,078.5 billion (2023: Rp 3,078.5 billion). Further details are disclosed in Note 16. (c) Impairment of property, plant and equipment The Group identified the existence of impairment indicators on the rubber bearer plants and the underlying fixed assets associated with these rubber plantations, upon consideration of the market environment, conditions of the rubber plantations, production yield and the outlook of these plantation estates and determined the recoverable amount based on fair value less cost to sell, using discounted cash flow method. During the financial year ended 31 December 2024, the Group recorded an impairment loss of Rp296.2 billion (2023: Rp183.4 billion) to reduce the carrying amount of the rubber bearer plants, and the underlying fixed assets associated with these rubber plantations to their estimated recoverable amounts. This was recognised in the statement of comprehensive income under other operating expenses. The carrying amount of the Group’s property, plant and equipment and their related impairment as at 31 December 2024 are disclosed in Note 14. Group Overview Financials Other information Sustainability and Governance Operation and Financial Review Indofood Agri Resources Ltd. 98
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