Financial Report Template Page 69
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80NOTES TO THE FINANCIAL STATEMENTS
(CONT)
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 34 BUSINESS COMBINATIONS CONT.
Acquisition of Browne and Klein
On 1 July 2014, the Group (via a fully owned subsidiary company called SB Law Pty Ltd) acquired 100% of the voting shares of the
existing law practice Browne and Klein, trading as Stephen Browne Personal Injury Lawyers (SBPIL). SBPIL is a business partnership
based in Western Australia specialising in Personal Injury Law.
The Group has acquired SBPIL in line with its strategic objective to diversify earnings through the expansion of its geographic
coverage. The acquisition has been accounted for using the acquisition method as described within AASB3. The consolidated financial
statements include the results of SBPIL for the full year ended 30 June 2015.
The fair values of the identifiable assets and liabilities of SBPIL as at the date of acquisition were as follows:
Fair value recognised on acquisition
Assets
$
Work in progress (WIP)
11,439,170
Less WIP provision
(1,170,187)
Unbilled disbursements
3,344,152
Plant and equipment
103,722
Make good
20,000
Deferred tax asset
48,051
Total assets acquired
13,784,908
Liabilities
Long service leave provision
(50,800)
Annual leave
(89,369)
Make good provision
(20,000)
Total liabilities acquired
(160,169)
Total identifiable net assets at fair value
13,624,739
Goodwill arising on acquisition
3,493,910
Purchase consideration
17,118,649
Analysis of cash flows on acquisition:
Net cash acquired with the subsidiary
–
Cash paid
(6,750,584)
Net cash outflow
(6,750,584)
Total purchase consideration consists of:
Cash paid
6,750,584
500,000 Ordinary shares in Shine Corporate Limited
1,175,000
Fair value of deferred consideration payments
5,969,539
Fair value of contingent consideration payments
3,223,526
17,118,649
67
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