171
Annual Report 2015
26 ACQUISITION OF A SUBSIDIARY (CONT’D)
Identifiable assets and liabilities assumed
The following table summarises the recognised amounts of assets acquired and liabilities assumed at the date of acquisition.
$’000
Property, plant and equipment
132,686
Inventories
73
Trade and other receivables
2,165
Cash at bank
4,961
Trade and other payables
(3,802)
Total identifiable net assets
136,083
Measurement of fair values
The valuation techniques used for measuring the fair value of material assets acquired were as follows:
Assets acquired
Valuation techniques
Property, plant and equipment
Market comparison technique and Discounted cash flow technique
: The Market
comparison valuation model considers quoted market prices for similar items
when they are available. The Discounted cash flow valuation model is based upon
a ten year forecast of the Property’s potential trading performance, having built
into the calculations any capital expenditure required for the hotel together with
a Fixtures, Fittings & Equipment Reserve, based upon an appropriate percentage
of the forecast turnover.
If new information obtained within one year from the date of acquisition about facts and circumstances that existed at
the date of acquisition identifies adjustments to the above amounts, or any additional provisions that existed at the date
of acquisition, then the accounting for the acquisition will be revised.
27 FINANCIAL INSTRUMENTS
Financial risk management
Overview
The Stapled Group has exposure to the following risks arising from financial instruments:
• credit risk
• liquidity risk
• market risk
NOTES TO THE FINANCIAL STATEMENTS
