Annual Report 2011 - Food Junction

74
Notes to the Financial Statements (cont’d)
31 December 2011
4. Investment in subsidiary companies
Loan to subsidiary companies (cont’d)
Acquisition of subsidiary company
In the prior year, the Group acquired 100% equity interest in All Around Limited from a related party,
Tamsett Holdings Limited, a wholly-owned subsidiary of Lippo China Resources Limited.
The effect of the acquisition on cash flows is as follows:
Annual Report
2010
$’000
Total cash consideration 5,210
Less: Cash and cash equivalents of subsidiary company acquired (1,624)
Net cash outflow on acquisition 3,586
Adjustment to fair value previously recognised on the acquisition of All Around Limited that was
determined provisionally in 2010.
The purchase price allocation of the acquisition of All Around Limited in the financial year ended 31
December 2010 were provisional as the results of the independent purchase price allocation have not
been received by the date the financial statements were authorised for issue. The purchase price
allocation was received in October 2011 and showed that the fair value at the date of acquisition was
$1,904,000, an increase of $92,000 compared to the provisional value.
The value of order backlog and deferred tax liability increased by $110,000 and $18,000 respectively.
There was also a corresponding decrease in goodwill on consolidation of $92,000. As these charges
are not material, adjustments are made in 2011, without prior period adjustments.
5. Intangible assets
Group
Goodwill on
Management
service
Order
consolidation Trademark agreement backlog Total
$’000 $’000 $’000 $’000 $’000
Cost
As at 1 January 2010 1,487 3,977 216 – 5,680
Arising from acquisition of
a subsidiary company 3,579 – – – 3,579
As at 31 December 2010
and 1 January 2011 5,066 3,977 216 – 9,259
Adjustment to intangible
asset arising from
acquisition of subsidiary
company in prior year (92) – – 92 –
As at 31 December 2011 4,974 3,977 216 92 9,259
Accumulated amortisation
As at 1 January 2010 – – (73) – (73)
Charge for the financial
year – – (54) – (54)
As at 31 December 2010
and 1 January 2011 – – (127) – (127)
Charge for the financial
year – – (72) (92) (164)
As at 31 December 2011 – – (199) (92) (291)
Net carrying amount
As at 31 December 2011 4,974 3,977 17 – 8,968
As at 31 December 2010 5,066 3,977 89 – 9,132