FGV Audited Financial Statements 2020

24 INVESTMENT IN SUBSIDIARIES (CONTINUED) (b) Acquisitions, incorporation and disposal of subsidiaries during the financial year (continued) (i) The effects of the acquisition of FGVDF Group during the financial year are as follows: (continued) The cash outflow on acquisition is as follows: RM’000 Purchase consideration 10,050 Less : Cash and cash equivalents acquired (10,257) Net cash inflow on acquisition 207 The goodwill on acquisition is as follows: RM’000 Purchase consideration 10,050 Fair value of net assets acquired (4,013) Goodwill on acquisition (Note 23) 6,037 The Group recognised the non-current controlling interest in FGVDF Group at the non-controlling interest’s proportionate share of the recognised amounts of FGVDF Group’s identifiable net assets. The effect of the acquisition of FGVDF Group on the financial results of the Group during the financial year is shown below: RM’000 Revenue 5,159 Cost of sales (4,958) Gross profit 201 Operating expenses (1,927) Finance cost (35) Loss after taxation (1,761) The effect of the acquisition of FGVDF Group on the financial results of the Group during the financial year had the acquisition taken effect at the beginning of financial year is shown below: RM’000 Revenue 5,216 Cost of sales (5,174) Gross profit 42 Operating expenses (2,345) Finance cost (428) Loss after taxation (2,731) 125 Notes to the Financial Statements For The Financial Year Ended 31 December 2020 Audited Financial Statements 2020