ST Engineering Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C3 Intangible assets (continued) Sensitivity to changes in assumptions: (a) Management has identified the following key assumption for which a change as set out below could cause the carrying amount to exceed the recoverable amount. Business Divisions Assumption Change required for carrying amount to equal the recoverable amount 2020 2019 % % Communication & Sensor Systems Group Revenue growth rate (average of next 5 years) 1.7 0.5 (b) No sensitivity analysis was disclosed for the remaining CGUs as the Group believes that any reasonable possible change in the key assumptions is unlikely to result in any material impairment to the CGUs. Key Estimate and judgement: Impairment of goodwill Determination of potential impairment requires an estimation of the recoverable amount of the CGUs to which goodwill are allocated. Key assumptions made to the projected cash flows requiring judgement include growth rate estimates and discount rates. / ST ENG I NEER I NG 192