/ . 9 3
A N N U A L R E P O R T 2 0 1 5
T H E S T R E N G T H O F O U R B R A N D S
2 1 . ot he r L i ab i l i t i e s ( Con t ’ d )
21b. Warranty Provision
group
2015
$’000
2014
$’000
Balance at beginning of the year
234
419
Provision charged to profit or loss included in cost of sales
77
8
Used
(215)
(193)
Balance at end of the year
96
234
22 .
acqu i s i t i on o f Sub s i d i a r y
On 15 August 2014, the Group incorporated a new subsidiary, AutoInc Eurosports Pte. Ltd. (“AE”). AE acquired the relevant
assets and liabilities of Autoinc Sports Pte. Ltd., Birel Singapore Pte. Ltd. and Autoinc Lifestyle Pte. Ltd., entities that were
owned by a common controlling shareholder.
The consideration paid by AE was $1,500,000 and the Group holds a shareholding interest of 60% in AE. The transaction
was accounted for by the acquisition method of accounting.
Details of the assets and liabilities acquired and goodwill arising from the acquisition are as follows:
2015
$’000
Inventories
292
Other assets
122
Cash
144
Plant and equipment
116
Deferred income
(144)
530
2015
net cash outflows on acquisition:
$’000
Cash consideration
1,500
Less: cash and cash equivalents acquired
(144)
Net cash outflow
1,356
