KENANGA ANNUAL REPORT 2019

207 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 17. INTANGIBLE ASSETS (CONT’D.) (g) Sensitivity to changes in assumptions Management believes that a reasonably possible change in any of the above key assumptions would not cause, in overall basis, the recoverable amounts of the intangible assets to be lower than the carrying values of the CGUs. 18. RIGHT-OF-USE ASSETS Group Building RM’000 Equipment RM’000 Total RM’000 2019 Cost Effect of adoption of MFRS 16: At 1 January 2019 24,445 290 24,735 Acquisition of a subsidiary 73 - 73 Additions 9,664 - 9,664 Derecognition (29) - (29) At 31 December 2019 34,153 290 34,443 Accumulated amortisation At 1 January 2019 - - - Acquisition of a subsidiary 18 - 18 Amortisation for the financial year (Note 33) 9,588 210 9,798 Derecognition (29) - (29) At 31 December 2019 9,577 210 9,787 Net carrying amount At 31 December 2019 24,576 80 24,656