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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
100
8.
Investment in subsidiaries (cont’d)
(a) Acquisition of a subsidiary
On 20 January 2015, the Company had acquired a subsidiary, DPO Plantations Sdn. Bhd.,
with 2 ordinary shares of RM1 each for a cash consideration of RM2, representing 100%
equity interest in the subsidiary.
The summary effects on the acquisition of DPO Plantations Sdn. Bhd. are as follow:
2015
RM
Cash and bank balances
632
Payables
(42,313)
Net liabilities acquired
(41,681)
Goodwill on consolidation
41,683
Total purchase consideration
2
Cash and cash equivalents of the subsidiary acquired
632
Net cash inflows
630
(b) Impairment assessment of investments in subsidiaries
Investments in subsidiaries are tested for impairment when such indicators exist. This
requires an estimation of the value-in-use of these investments. In making this assessment,
amongst others, the management has taken into consideration the projected long-term
growth in the broadcasting advertising industry as well as oil palm plantation activities of
the respective subsidiaries of the Group.
Based on the impairment assessment performed, no provision for impairment of subsidiaries
has been made in the current year as the estimated recoverable amounts of the investment
are higher than their carrying amounts.