GOING
THE DISTANCE
EUROSPORTS
GLOBAL
.94
NOT E S TO T HE
F I NANC I A L S TAT EMEN T S
YEAR ENDED
31 MARCH, 2016
23.
ACQUISITION OF SUBSIDIARY
There were no acquisition of subsidiaries during the reporting year ended 31 March 2016.
As previously disclosed in the financial statements for the reporting year ended 31 March 2015, the group incorporated
a new subsidiary, AutoInc EuroSports Pte Ltd (¡°AE¡±) on 15 August 2014 and AE acquired the relevant assets and liabilities
of AutoInc Sports Pte Ltd, Birel Singapore Pte Ltd and AutoInc Liftstyle 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 were as follows:
2015
$¡¯000
Inventories
292
Other assets
122
Cash
144
Plant and equipment
116
Deferred income
(144)
530
Net cash outflows on acquisition:
Cash consideration
1,500
Less: cash and cash equivalents acquired
(144)
Net cash outflow
1,356
Goodwill arising on acquisition:
The goodwill arising on acquisition was as follows:
2015
$¡¯000
Consideration transferred
1,500
Non-controlling interests at fair value
1,000
Fair value of identifiable net assets acquired
(530)
Goodwill arising on acquisition
1,970
The non-controlling interest of 40% in the acquiree at the acquisition date was measured based on the non-
controlling interest¡¯s proportionate share of the acquiree¡¯s net identifiable assets.
