FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 256 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 22 INVESTMENT IN SUBSIDIARIES (Cont’d.) (e) Acquisition of plantation estates in previous financial year The acquisition of plantation estates met the criteria for predecessor accounting. The difference between the fair value of the purchase consideration and the carrying 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 40) 2,088,969 The results of the plantation estates that have been accounted for in the statement of comprehensive income under the predecessor method of accounting are as follows: Group 2012 RM’000 Revenue 2,709,446 Cost of sales (1,600,756) Gross profit 1,108,690 Other operating income 4,602 Administrative expenses (117,698) Finance income 4,447 Finance costs (620) Taxation (263,412) Profit for the financial year 736,009