91
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
28 ACQUISITIONOF SUBSIDIARIES (CONT’D)
(i)
ECG Property Services Pte. Ltd. (cont’d)
The PPA exercise was completed during the financial year ended 30 June 2016.
The fair value of net assets approximated to the carrying amounts of the net
assets acquired and no intangible assets were valued.
Acquisition-related costs
The Group incurred acquisition-related costs of $104,800 on legal fees and due
diligence costs. The costs have been included in administrative expenses.
Identifiable assets acquired and liabilities assumed
The following table summarises the recognised amounts of assets acquired and
liabilities assumed at the acquisition date.
Group
2015
$
Cash and cash equivalents
587,727
Plant and equipment
197,058
Trade and other receivables
1,155,446
Investment in associate
162,407
Other assets
17,876
Trade and other payables
(1,024,264)
Current tax liabilities
(765)
Deferred tax liabilities
(1,238)
Identifiable net assets acquired
1,094,247
The trade and other receivables comprise gross contractual amounts due of
$1,155,446, none of which was expected to be uncollectible at the acquisition date.
28 ACQUISITIONOF SUBSIDIARIES (CONT’D)
(i)
ECG Property Services Pte. Ltd. (cont’d)
Goodwill
The goodwill arising on acquisition is as follows:
Group
2015
$
Consideration transferred
13,570,000
Fair value of identifiable net assets acquired
(1,094,247)
Goodwill arising on acquisition (Note 5)
12,475,753
The goodwill arising on the acquisition of ECG Property Services is attributable to
the synergies expected to be achieved from the Group’s property development
projects. The goodwill is not deductible for tax purpose.
An analysis of the cash flows in respect of the acquisition is as follows:
Group
2015
$
Cash paid
3,000,000
Cash and cash equivalents acquired
(587,727)
Net outflow of cash and cash equivalents on acquisition
2,412,273
