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NOTES TO THE FINANCIAL STATEMENTS (cont’d)
For the year ended 31 December 2012
14. Investment in subsidiaries (cont’d)
Acquisitions of subsidiaries (cont’d)
Transaction Cost
Transaction cost related to the acquisition of US$16,000 have been recognised in the “Other operating expenses” line item in the
Group’s profit or loss for the year ended 31 December 2012.
Property, plant and equipment acquired
An external valuer, Knight Frank LLC, was engaged to assess the fair value of the property as at date of acquisition. Based on the
valuation, the fair value was used to compute the goodwill at the date of acquisition.
Impact of the acquisitions on profit or loss
From the date of acquisitions to 31 December 2012, the newly acquired subsidiaries have contributed US$24,298,000 of revenue to
the Group revenue and US$2,265,000 of net profit to the Group profit. If the business combination had taken place at the beginning
of the year, the revenue from continuing operations would have been US$238,540,000 and the Group’s profit from continuing
operations, net of tax would have been US$20,083,000.
15. Investment in associates
Group
2012
US$’000
2011
US$’000
Unquoted shares, at cost 10,230 8,230
Share of net post-acquisition reserves 2,660 1,758
12,890 9,988
105
Food Empire Holdings Limited Annual Report 2012