FGV Annual Report 2014

22 Investment in Subsidiaries (continued) (c) Incorporation and acquisitions of subsidiaries in previous financial year (continued) (iii) Acquisition of biodiesel refinery business and glycerine purification plant The effects of the acquisition of the business is as follows: Fair value RM’000 Buildings 3,900 Plant and machinery 35,553 39,453 Purchase consideration, representing net cash outflow on acquisition 36,922 Fair value of assets acquired (39,453) Negative goodwill arising from the acquisition of a business (2,531) The effects of the acquisition of the business on the financial results of the Group in previous financial year is shown below: RM’000 Revenue 46,687 Cost of sales (43,647) Gross profit 3,040 Other operating income 2,943 Administrative expenses (4,978) Profit before taxation 1,005 Taxation 387 Profit after taxation 1,392 The effects of the acquisition of the business on the previous financial year’s financial results of the Group were not material. Felda Global Ventures Holdings Berhad pg 260 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2014