Cordlife Group Limited
Annual Report 2016
105
Notes to
The Financial Statements
for the financial year ended 30 June 2016
34. Investment in subsidiaries (cont’d)
Acquisition of subsidiaries (cont’d)
Remeasurement loss on previously held equity interest in Stemlife Berhad
The Group recognised a loss of $1,594,000 as a result of measuring at fair value its 31.81% equity interest in
Stemlife held before the business combination in the profit or loss for the year ended 30 June 2016.
Goodwill arising from acquisition
The goodwill of $7,924,000 comprises the value of strengthening the Group’s market position in the Asia region
and cost reduction synergies expected to arise from the acquisition. Goodwill is allocated to the entity acquired
(Note 14). None of the goodwill recognised is expected to be deductible for income tax purposes.
Impact of the acquisition on comprehensive income
From the acquisition date, Stemlife has contributed $3,456,000 of revenue and $257,000 of losses to the
Group’s profit for the year. If the business combination had taken place at the beginning of the year, the Group’s
revenue and profit for the year would have been $62,338,000 and $12,694,000 respectively.
Customer contracts and brand
Customer contracts and brand have been identified as intangible assets arising from the Acquisition. The Group
has engaged an independent valuer to determine the fair value of these intangible assets.
Interest in subsidiary with material non-controlling interest (NCI)
As at 30 June, the Group has the following subsidiary that has NCI that is material to the Group.
Proportion
of ownership (Gain)/loss
interest held allocated to Accumulated
Principal
by non-
NCI during NCI at the end
place of
controlling the reporting of reporting
Dividends
Name of subsidiary
business
interest
period
period
paid to NCI
$’000
$’000
$’000
30 June 2016:
Stemlife Berhad
Malaysia
10.02%
(28)
(2,110)
–
30 June 2015:
Cordlife Sciences (India) Pvt. Ltd.
India
15%
262
444
–
Significant restrictions:
There are no significant restrictions on the Group’s ability to use or access assets and settle liabilities of the
subsidiary with material non-controlling interest.
