FGV Annual Report 2014

22 Investment in Subsidiaries (continued) (b) Incorporation and acquisitions of subsidiaries during the financial year (continued) (ii) The effects of the acquisition of PT TAA is as follows: (continued) The cash outflow on acquisition is as follows: RM’000 Purchase consideration: 24,407 Less: Cash and cash equivalents acquired (1,018) 23,389 Less: Deposit paid in 2013 (9,058) Net cash outflow on acquisition 14,331 The goodwill on acquisition is as follows: RM’000 Purchase consideration: 24,407 Fair value of net assets acquired (24,407) Goodwill on acquisition – Included in the purchase consideration is settlement of debts due to the former shareholder of RM18.2 million that was novated to the Group. The Group recognised the non-current controlling interest in PT TAA at the non-controlling interest’s proportionate share of the recognised amounts of PT TAA’s identifiable net assets. The effects of the acquisition of PT TAA on the financial results of the Group during the financial year is shown below: RM’000 Operating expenses (1,055) Loss after taxation (1,055) The effect of the acquisition of PT TAA on the financial results of the Group during the financial year had the acquisition taken effect at the beginning of the financial year is shown below: RM’000 Operating expenses (6,320) Loss after taxation (6,320) Felda Global Ventures Holdings Berhad pg 252 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2014