NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
14
INVESTMENT IN SUBSIDIARIES (CONT’D)
(iv)
Acquisition of ownership interest in subsidiary, without loss of control
In 2015, the Company acquired an additional 5.92% equity interest in ICM from its non-controlling
interest for a cash consideration of $223,000. As a result of this acquisition, ICM became a wholly-owned
subsidiary of the Group. The carrying value of the net assets of ICM at 4 May 2015 was $1,952,000 and
the carrying value of the additional interest acquired was $116,000.
The difference of $107,000 between the consideration and the carrying value of the additional interest
acquired has been recognised as “Premium paid on acquisition of non-controlling interest” within equity.
The following summarises the effect of the change in the Group’s ownership interest in ICM on the equity
attributable to equity holders of the Company:
$’000
Consideration paid for acquisition of non-controlling interest
223
Decrease in equity attribution to non-controlling interest
(116)
Decrease in equity attribution to equity holders of the Company
107
(v)
The management does not consider the subsidiaries’ non-controlling interests to be material to the
Group. Accordingly, the summarised financial information of the subsidiaries are not being disclosed.
(vi)
Impairment testing of investment in subsidiaries
Management performed impairment tests for its investment in subsidiaries.
An impairment loss of $491,000 on the investment in the subsidiaries has been recognised for the financial
year ended 30 June 2016 (2015: $2,090,000). The estimates of the recoverable amount of investment
has been determined by management based on recoverable amount determined based on its fair value
less cost to sell. The fair value less cost to sell is determined based on adjusted net assets value of the
subsidiary which is determined by taking into account the fair values of underlying assets and liabilities of
the subsidiary. This fair value measurement is categorised as a Level 3 fair value in the fair value hierarchy
based on the inputs in the valuation technique used.
15
DUE FROM/(TO) CUSTOMERS FOR CONTRACT WORK-IN-PROGRESS
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
(Restated)
Aggregate costs incurred to-date
70,983
40,630
–
–
Attributable profits recognised to-date
16,772
10,726
–
–
87,755
51,356
–
–
Less: Progress billings
(79,340)
(44,657)
–
–
8,415
6,699
–
–
Presented as:
Due from customers for contract work-in-progress
17,053
12,081
–
–
Due to customers for contract work-in-progress
(8,638)
(5,382)
–
–
8,415
6,699
–
–
94
ISOTEAM LTD.
ANNUAL REPORT 2016
