BADDITIONAL SAMPLE NOTES TO THE FINANCIAL STATEMENTS
100ADDITIONAL INFORMATION
(Usually placed before the accompanying notes in the same order as the financial statements)
Business combinations109.1
1.BUSINESS ACQUISITIONS
Packaging manufacturer
On August 7, 20+0, the Company acquired the tangible assets of Packit Inc. a packaging material manufacturer, for a cash consideration of $225,000.
Utopia Inc.
On March 7, 20+0, the Company acquired, for an amount of $700,000, 70% of the voting shares of Utopia Inc., a gadget distributor. This acquisition was recorded under the purchase method.
At acquisition date, non-controlling interest is measured at the non-controlling interest's proportionate share of the acquired company’s’ identifiable net assets.
This acquisition is summarized as follows:
$Cash / 45,300
Other current assets / 527,800
Property, plant and equipment / 688,600
Intangible assets / 100,000
Goodwill / 94,200
1,455,900
Current liabilities / 290,900
Long-term debt / 165,000
1,000,000
Non-controlling interest / 300,000
Net assets acquired / 700,000
Consideration given
Cash flow / 400,000
Term loan granted by seller / 300,000
700,000
In the cash flow statement:
INVESTING ACTIVITIES
Acquisition of subsidiary Utopia Inc., net of cash acquired (note X) / 354,700
Business combinations109.2
2.BUSINESS ACQUISITION
On June 16, 20+0, the Company acquired Proprio enr., a registered business belonging to the Company’s majority shareholder. The Company offers computer science consultation.
This related party transaction was not performed in the normal course of business, and was measured at the carrying amount of the net assets accounted in the seller's accounts. It is summarized as follows:
Non-cash working capital items221,506
Fixed assets15,081
Goodwill 30,000
266,587
Bank overdraft7,195
Current liabilities other than bank overdraft200,386
Long-term debt 16,465
Net assets acquired 42,541
Consideration given
Term loan12,000
Share issue 30,541
42,541
In the cash flow statement:
INVESTING ACTIVITIES
Acquisition of a business including the bank overdraft took in charge (note X)7,195
Business combinations109.3
3.BUSINESS COMBINATION
On June 30, 20+0, Fiction Ltd, a widget manufacturer, and Illusion Ltd, a widget distributor and wholly-owned subsidiary of Fiction Ltd., were combined under the name of Fiction Ltd. This combination which only represents a change in form, is a related party transaction measured at the carrying amount of the assets of each of the companies.
The figures for 20-1 were restated as if the companies had only formed a single entity since they were incorporated.
OR
The figures for 20-1 have not been disclosed as it would not have been useful to do so given the restructuring arising from the business combination.
Rév. 07-2014