160
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
35. ACQUISITION AND DISPOSAL OF SUBSIDIARIES (continued)
The fair value of the identifiable assets and liabilities of IBB as at the date of acquisition are as follows:
RM’000
Total identifiable net assets
*
Goodwill arising from acquisition
16,667
Total fair value of purchase consideration
16,667
*
Represents RM300
Goodwill arising from acquisition of IBB has been recognised on a provisional basis. In accordance with MFRS 3
Business
Combinations
, the fair value of the identifiable assets, liabilities and contingent liabilities of IBB as at date of acquisition shall be
measured. The measurement period shall not exceed one year from the acquisition date.
As at 30 June 2016, a provisional goodwill is recorded based on the excess of the sum of the fair value of purchase consideration over
the total identifiable net assets acquired as at date of acquisition.
The consideration transferred for the acquisition of IBB is as follows:
RM’000
Cash paid
2,989
Contingent consideration recognised as at acquisition date
13,678
Total fair value of purchase consideration
16,667
The effects of the acquisition of IBB on cash flows of the Group are as follows:
RM’000
Total purchase consideration
16,667
Less:
- contingent consideration
(13,678)
- cash and cash equivalents acquired
(*)
Net cash outflow of the Group on acquisition
2,989
*
Represents RM300
