90
TEHO INTERNATIONAL INC LTD.
Annual Report 2015
27 ACQUISITION OF SUBSIDIARIES (CONT’D)
(iii) TIEC Holdings Pte. Ltd. (cont’d)
Identifiable assets acquired and liabilities assumed
As at 30 June 2014, the fair value of identifiable assets and liabilities were determined
on a provisional basis as the Group was still in the process of performing purchase
price allocation (“PPA”) exercise.
The PPA exercise was completed during the financial year ended 30 June 2015. The
fair value of a property under development was increased by $700,000 based on
a valuation conducted by an independent valuer. Accordingly, the related deferred
tax liability was increased by $119,000 and the goodwill from the acquisition was
decreased by $581,000.
The following table summarises the recognised amounts of assets acquired and
liabilities assumed at the acquisition date.
At fair values
(Restated)
2014
$
Cash and cash equivalents
3,796,574
Trade and other receivables
636,422
Other assets
251,150
Development properties
32,154,735
Trade and other payables
(1,435,419)
Other financial liabilities
(28,450,683)
Income tax payable
(70,267)
Deferred tax liabilities
(845,282)
Identifiable net assets acquired
6,037,230
The trade and other receivables comprise gross contractual amounts due of
$636,422, none of which was expected to be uncollectible at the acquisition date.
27 ACQUISITION OF SUBSIDIARIES (CONT’D)
(iii) TIEC Holdings Pte. Ltd. (cont’d)
Goodwill
The goodwill arising on acquisition is as follows:
2014
(Restated)
$
Consideration transferred
11,053,844
Fair value of identifiable net assets acquired
(6,037,230)
Goodwill arising on acquisition (Note 5)
5,016,614
The goodwill arising on the acquisition of TIEC Holdings Pte. Ltd. is attributable to
the anticipated profitability of this subsidiary. The goodwill is not deductible for tax
purpose.
An analysis of the cash flows in respect of the acquisition is as follows:
2014
$
Cash paid
7,278,844
Cash and cash equivalent acquired
(3,796,574)
Net outflow of cash and cash equivalents on acquisition
3,482,270
NOTES TO THE
FINANCIAL STATEMENTS
Year ended 30 June 2015
