TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
134
NOTES TO THE FINANCIAL STATEMENTS
36. Acquisition of subsidiary
On 18 December 2013, the Group acquired all the shares in Julang Lumayan Sdn Bhd for RM2,351,000, satisfied in
cash. The company’s intended principal activity is property investment holding. The acquisition of Julang Lumayan
Sdn Bhd has further expanded the Group’s property holdings. If the acquisition had occurred on 1 January 2013,
management estimates that consolidated profit for the financial year would have been increased by RM963,000. In
determining these amounts, management has assumed that the fair value adjustments, determined provisionally, that
arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2013.
The following summarises the major classes of consideration transferred, and the recognised amounts of assets
acquired and liabilities assumed at the acquisition date:
2013
Group
RM’000
Fair value of consideration transferred
Cash and cash equivalents
2,351
Identifiable assets acquired and liabilities assumed
Property, plant and equipment
1,850
Cash and cash equivalents
1
Other payables
(9)
Deferred tax liabilities
(139)
1,703
The fair value of the land has been determined based on the valuation of RM1,850,000.
Group
RM’000
Net cash outflow arising from acquisition of subsidiary
Purchase consideration settled in cash and cash equivalents
(2,351)
Cash and cash equivalents acquired
1
(2,350)
Goodwill
Goodwill was recognised as a result of the acquisition as follows:
Group
RM’000
Total consideration transferred
2,351
Fair value of identifiable net assets
(1,703)
Goodwill
648
