FGV Annual Report 2014

22 Investment in Subsidiaries (continued) (b) Incorporation and acquisitions of subsidiaries during the financial year (continued) (iii) The effects of the acquisition of APL is as follows: Carrying value Provisional Fair value RM’000 RM’000 Property, plant and equipment 393,215 414,673 Biological assets 225,183 247,222 Inventories 15,564 15,564 Trade and other receivables 3,282 6,147 Goodwill 17,272 – Tax recoverable 12 12 Cash and cash equivalents 18,904 18,904 Payables (102,602) (105,466) Borrowings (516,969) (517,120) Deferred tax liabilities (1,680) (12,083) Total net assets acquired 52,181 67,853 Non-controling interests – 18 52,181 67,871 The cash outflow on acquisition is as follows: RM’000 Purchase consideration: 567,898 Less: Cash and cash equivalents acquired (18,904) Net cash outflow on acquisition 548,994 The goodwill on acquisition is as follows: RM’000 Purchase consideration: 567,898 Provisional fair value of net assets acquired (67,871) Provisional goodwill on acquisition 500,027 Based on FRS 3 “Business Combinations”, the Group has a period of one year from the acquisition date to complete the purchase price allocation (“PPA”) and has taken this option. The Group recognised the non-current controlling interest in APL at the non-controlling interest’s proportionate share of the recognised amounts of APL’s identifiable net assets. Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 253