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2 5 B u s i n e s s c om b i n a t i on s ( c on t i n u e d )
(b) Detailed accounting treatment of acquisition of 41% of Hamilton Riverview Hotel Limited
Presented below is detailed accounting treatment of the acquisition that took place in October 2013.
2014
$’000
Total acquisition comprises:
Cash paid
1,000
Trade and other payables (discounted at 7.5%)
10,505
Total net acquisition
11,505
Fair value of equity interest in Hamilton Riverview Hotel Limited held before the business combination
14,191
Total consideration
25,696
Recognised amounts of identifiable assets acquired and liabilities assumed at fair value:
Cash and cash equivalents
3,293
Property, plant and equipment
44,040
Inventories
40
Trade and other receivables
881
Trade and other payables
(1,219)
Other financial liabilities
(358)
Borrowings
(9,200)
Deferred tax liability
(3,183)
Total identifiable net assets
34,294
Non-controlling interest based on the proportionate interests of the recognised amounts of the net assets and liabilities
(5,914)
Gain on purchase
(2,684)
25,696
Property, plant and equipment was valued by an independent valuer based on discounted cash flow models.
The Group recognised a gain of $0.3m as a result of measuring at fair value its 41% equity instrument in Hamilton Riverview
Hotel Limited held before the business combination. The gain is included in other income in the Group’s statement of
comprehensive income for the year ended 31 March 2014.
The revenue included in the consolidated statement of comprehensive income since 16 October 2013 to 31 March 2014
contributed by Hamilton Riverview Hotel Limited was $6.5m. Hamilton Riverview Hotel Limited also contributed profit of $0.5m
over the same period.
Had Hamilton Riverview Hotel Limited been consolidated from 1 April 2013, the 2014 consolidated statement of income would
show pro-forma revenue $15m and profit of $1.6m, excluding the impact of gains arising from measurement on acquisition. The
gain on purchase is classified within other income (see note 3).
The gain on purchase of $2.7m has been reported and is the result of the restatement of control due to both the majority
shareholding being assumed as well as significant influence. In addition to this, a premium adjustment has been received on the
non-controlling interest on purchase.
waikato raupatu lands trust
notes to the financial statements
f o r t h e y e a r e n d e d 3 1 m a r c h 2 0 1 5
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