FGV Annual Report 2012

71 F i n a n c i a l S t a t e m e n t s 2 0 1 2 P e n y a t a K e w a n g a n 21 INVESTMENT IN SUBSIDIARIES (continued) (c) Acquisition of plantation estates (continued) (vi) The acquisition of plantation estates met the criteria for predecessor accounting. The difference between the fair value of the purchase consideration and carrying the value of the net assets acquired amounting to RM2,088,969,000 as at 31 December 2012, which was recognised as a reorganisation reserve, is described below: RM’000 Fair value of the LLA liability 5,842,694 Cash consideration pursuant to the LLA Addendum 54,690 Fair value of purchase consideration 5,897,384 Less: Carrying value of plantation estates’ assets and liabilities acquired Assets Property, plant and equipment (695,262) Biological assets (1,891,544) Inventories (24,164) Receivables (8,103) Cash and bank balances (306) Total assets (2,619,379) Liabilities Trade and other payables 123,969 Deferred tax liabilities 17,874 Amount due to other related companies 129,794 Total liabilities 271,637 3,549,642 Less: Deferred tax effect arising from LLA liability (1,460,673) Amount recognised in reorganisation reserve as at 31 December 2012 (Note 37) 2,088,969