214
Ascott Residence Trust
Annual Report 2015
34 Acquisition of serviced residence properties and non-controlling interests, net of cash movements
(continued)
Acquisition of serviced residence properties and subsidiaries
(continued)
From the respective acquisition dates to 31 December 2014, the serviced residence properties and subsidiaries
contributed loss after tax of $1,808,000, mainly arising from a loss on revaluation of these serviced residence
properties. If the acquisitions had occurred on 1 January 2014, the Manager estimates that the consolidated
revenue would have been $390,732,000 and consolidated return for the year would have been $134,019,000.
The cash flows and net assets and liabilities of serviced residence properties and subsidiaries acquired are
provided below:
Recognised values
on acquisition
2015
$’000
2014
$’000
Serviced residence properties
461,618 546,441
Plant and equipment
2,802
8,798
Deferred tax assets
–
56
Inventories
14
46
Trade and other receivables
1,411
2,637
Cash and cash equivalents
15,352
19,779
Trade and other payables
(4,415)
(13,964)
Financial liabilities
(42,540)
(115,592)
Provision for taxation
(41)
(34)
Deferred tax liabilities
(14)
(31)
Net identifiable assets and liabilities acquired
434,187 448,136
Total consideration
434,187 448,136
Cash of subsidiaries acquired
(15,352)
(19,779)
Cash outflow on acquisition of serviced residence properties
418,835 428,357
Acquisitions of serviced residence properties and subsidiaries are complex in nature and can be material to
the financial statements. Assessment is required to determine the most appropriate accounting treatment of
assets acquired and of potential contractual arrangements relating to the acquisitions. The acquisitions during
the year were accounted for as acquisitions of serviced residence properties based on the assessments by
the Manager.
Notes to the Financial Statements
Year ended 31 December 2015
