KENANGA ANNUAL REPORT 2017

18. INTANGIBLE ASSETS (CONT’D.) Group Bank 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM'000 (d) Computer software (cont’d.) Accumulated amortisation At beginning of the financial year 4,634 3,666 2,281 1,920 Addition due to merger – – – 361 Amortisation (Note 33) 666 970 – – Disposals/write-off (1,016) (2) – – At end of the financial year 4,284 4,634 2,281 2,281 Net carrying amount 575 1,083 – – (e) Trading and clearing rights for derivatives broking Cost At beginning/end of the financial year 416 416 – – (f) Impairment test on intangible assets The intangible assets consist of: Goodwill Goodwill have been allocated to the following CGUs: Group 2017 RM’000 2016 RM’000 Stockbroking 147,459 147,459 Investment banking 37,101 37,101 Treasury 18,550 18,550 Investment management 5,644 5,644 208,754 208,754 Merchant banking licence – Merchant banking licence which is allocated to the Bank’s stockbroking, investment banking and treasury CGUs represents contribution to BNM for a licence to carry on merchant banking business to transform the Bank from a Universal Broker into an Investment Bank. Fund management contracts – Intangible asset relating to fund management contracts arising from the acquisition of one of the Bank’s subsidiary operations is allocated to the unit trust and asset management CGU. Trading and clearing rights – The value of trading and clearing rights issued by Bursa Malaysia Derivatives Berhad (“BMDB”) which is allocated to the futures broking CGU. Kenanga Investment Bank Berhad 31 December 2017 142 notes to the financial statements